I 
116TH CONGRESS 
1ST SESSION H. R. 4311 
To protect consumers from discriminatory State taxes on motor vehicle 
rentals. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 12, 2019 
Mr. COHEN (for himself and Mr. CHABOT) introduced the following bill; which 
was referred to the Committee on the Judiciary 
A BILL 
To protect consumers from discriminatory State taxes on 
motor vehicle rentals. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘End Discriminatory 
State Taxes for Automobile Renters Act of 2019’’. 
SEC. 2. FINDINGS; PURPOSE. 
(a) FINDINGS.—Congress finds the following: 
(1) Congress has prohibited economic protec-
tionism by State and local governments that unduly 
burden or discriminate against interstate commerce 
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and transportation under the authority granted by 
the Commerce Clause of the Constitution by enact-
ing laws such as the Railroad Revitalization and 
Regulatory Reform Act of 1976, the Motor Carrier 
Act of 1980, the Bus Regulatory Reform Act of 
1982, and the Airport and Airway Improvement Act 
of 1982. 
(2) In Gibbons v. Ogden, 22 U.S. 1 (1824), a 
case challenging the exclusive right of navigating the 
waters of New York granted by that State, the Su-
preme Court affirmed that it is the sole right of 
Congress to regulate commerce between the States 
under what Chief Justice John Marshall recognized 
as the dormant Commerce Clause. 
(3) Since 1990, over 100 discriminatory taxes 
have been imposed by State and local governments 
on motor vehicle rentals in violation of the dormant 
Commerce Clause. 
(b) PURPOSE.—The purpose of this Act is to prohibit 
prospectively, and provide a remedy for, tax discrimination 
by a State or Locality against the rental of motor vehicles. 
SEC. 3. PROHIBITION ON DISCRIMINATION. 
(a) IN GENERAL.—Chapter 805 of title 49, United 
States Code, is amended by adding at the end the fol-
lowing: 
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‘‘§ 80505. Tax discrimination against motor vehicle 
rental property 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ASSESSMENT AND ASSESSMENT JURISDIC-
TION.— 
‘‘(A) ASSESSMENT.—The term ‘assess-
ment’ has the meaning given that term in sec-
tion 11501(a)(1). 
‘‘(B) ASSESSMENT
JURISDICTION.—The 
term ‘assessment jurisdiction’ has the meaning 
given that term in section 11501(a)(2). 
‘‘(2) COMMERCIAL
AND
INDUSTRIAL
PROP-
ERTY.—The term ‘commercial and industrial prop-
erty’ means property, other than motor vehicle rent-
al property and land used primarily for agricultural 
purposes or timber growing, which is devoted to a 
commercial or industrial use. 
‘‘(3) COMMERCIAL
AND
INDUSTRIAL
TAX-
PAYERS.—The term ‘other commercial and indus-
trial taxpayers’ means persons of entities who are 
engaged in a trade or business, other than the trade 
or business of renting motor vehicles, within a State 
or Locality. 
‘‘(4) COVERED
PERSON.—The term ‘covered 
person’ means a person who— 
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‘‘(A) rents motor vehicles to another per-
son; 
‘‘(B) is engaged in the business of renting 
motor vehicles; 
‘‘(C) owns motor vehicle rental property; 
‘‘(D) rents a motor vehicle from another 
person; or 
‘‘(E) purchases motor vehicle rental prop-
erty. 
‘‘(5) DISCRIMINATORY
TAX.—The term ‘dis-
criminatory tax’ includes the following: 
‘‘(A) A tax discriminates against the rental 
of motor vehicles if a State or Locality imposes 
the tax on, or with respect to— 
‘‘(i) the rental of motor vehicles but 
the tax is not a generally applicable tax on, 
or with respect to, more than 51 percent of 
the rentals of other tangible personal prop-
erty within the State or Locality; or 
‘‘(ii) the rental of motor vehicles at a 
tax rate that exceeds the generally applica-
ble tax rate on at least 51 percent of the 
rentals of other tangible personal property 
within the same State or Locality. 
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‘‘(B) A tax discriminates against the busi-
ness of renting motor vehicles if a State or Lo-
cality imposes the tax on, or with respect to— 
‘‘(i) the business of renting motor ve-
hicles but the tax is not a generally appli-
cable tax on, or with respect to, more than 
51 percent of the businesses of other com-
mercial and industrial taxpayers within the 
State or Locality; or 
‘‘(ii) the business of renting motor ve-
hicles at a tax rate that exceeds the gen-
erally applicable tax rate on at least 51 
percent of the business of commercial and 
industrial taxpayers within the State or 
Local jurisdiction. 
‘‘(C) A tax discriminates against motor ve-
hicle rental property if a State or Locality— 
‘‘(i) assesses motor vehicle rental 
property at a value that has a higher ratio 
to the true market value of the property 
than the ratio of the assessed value to the 
true market value applicable to commercial 
and industrial property in the same assess-
ment jurisdiction; 
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‘‘(ii) levies or collects a tax on an as-
sessment that may not be made under 
clause (i); or 
‘‘(iii) levies or collects an ad valorem 
property tax on motor vehicle rental prop-
erty at a generally applicable tax rate that 
exceeds the tax rate applicable to commer-
cial and industrial property in the same as-
sessment jurisdiction. 
‘‘(6) LOCAL OR LOCALITY.—The terms ‘Local’ 
and ‘Locality’ mean a political subdivision of any 
State, or any governmental entity or person acting 
on behalf of such Locality, with the authority to im-
pose, levy, or collect taxes. 
‘‘(7) MOTOR VEHICLE.—The term ‘motor vehi-
cle’ has the meaning given that term in section 
13102(16). 
‘‘(8) MOTOR
VEHICLE
RENTAL
PROPERTY.— 
The term ‘motor vehicle rental property’ means 
property owned or used by a person engaged in the 
business of renting motor vehicles and used to pro-
vide rentals of motor vehicles. 
‘‘(9) RENTAL OF MOTOR VEHICLES.—The term 
‘rental of motor vehicles’ means the rental of a 
motor vehicle that is given by the owner of the 
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motor vehicle for exclusive use to another for not 
longer than 180 days for valuable consideration and 
only includes the rental of motor vehicles with a pre- 
arranged driver or motor vehicles without a driver, 
but shall not include taxi cab service as defined by 
section 13102(22). 
‘‘(10) RENTAL OF OTHER TANGIBLE OR PER-
SONAL PROPERTY.—The term ‘rental of other tan-
gible or personal property’ means any rental of tan-
gible or personal property, other than the rental of 
motor vehicles. 
‘‘(11) STATE.—The term ‘State’ means any of 
the several States, the District of Columbia, or any 
territory or possession of the United States, or any 
governmental entity or person acting on behalf of 
such State, and with the authority to impose, levy, 
or collect taxes. 
‘‘(12) TAX.—Except as otherwise specifically 
provided below, the term ‘tax’ means any type of 
charge required by statute, regulation, or agreement 
to be paid or furnished to a State or Locality, re-
gardless of whether such charge is denominated as 
a tax, a fee, or any other type of exaction. The term 
‘tax’ does not include any charge imposed by a State 
or Locality with respect to a concession agreement 
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at a federally assisted airport (provided the agree-
ment does not violate the revenue diversion provi-
sions of section 40116(d)), or the registration, li-
censing, or inspection of motor vehicles, if the 
charge is imposed generally with respect to motor 
vehicles, without regard to whether such vehicles are 
used in the business of renting motor vehicles within 
the State or Locality. 
‘‘(13) TAX BASE.—The term ‘tax base’ means 
the receipts, income, value, weight, or other measure 
of a tax to which the rate is applied. The ‘tax base’ 
of a tax imposed on a per unit basis is the unit. 
‘‘(14) GENERALLY
APPLICABLE
TAX.—The 
term ‘generally applicable tax’ may be determined 
by— 
‘‘(A) the gross receipts of rentals of other 
tangible personal property or other commercial 
and industrial taxpayers within the State or Lo-
cality to which the tax is imposed by the State 
or Locality compared to the gross receipts of 
rentals of other tangible personal property or 
other commercial and industrial taxpayers with-
in the State or Locality; or 
‘‘(B) another method used to determine 
whether more than 51 percent of rentals of 
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other tangible personal property or other com-
mercial and industrial taxpayers is subject to 
the tax. 
‘‘(b) UNREASONABLE BURDENS AND DISCRIMINA-
TION AGAINST INTERSTATE COMMERCE.— 
‘‘(1) IN GENERAL.—The following acts unrea-
sonably burden and discriminate against interstate 
commerce, and a State or Locality may not do any 
of them: 
‘‘(A) Levy or collect a discriminatory tax 
on the rental of motor vehicles. 
‘‘(B) Levy or collect a discriminatory tax 
on the business of renting motor vehicles. 
‘‘(C) Levy or collect a discriminatory tax 
on motor vehicle rental property. 
‘‘(2) EXCLUSION.—Discriminatory taxes are 
not prohibited under this section if the tax is im-
posed as of the date of the enactment of this section, 
does not lapse, the tax rate does not increase, and 
the tax base for such tax does not change. 
‘‘(c) REMEDIES.— 
‘‘(1) IN
GENERAL.—Notwithstanding section 
1341 of title 28, a covered person aggrieved of a vio-
lation of subsection (b) may bring a civil action in 
a district court of the United States seeking dam-
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ages, injunctive relief, other legal or equitable relief, 
or declaratory relief. 
‘‘(2) RELIEF.—In granting relief against a tax 
levied or collected in violation of subsection (b), if 
the tax is a discriminatory tax the court shall strike 
only the discriminatory or excessive portion of the 
tax. 
‘‘(3) BURDEN OF PROOF.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), a covered person shall have 
the burden of proving, by a preponderance of 
the evidence, that the levying or collecting of a 
tax violates subsection (b). 
‘‘(B) EQUIVALENT OF OTHER TAXES.—If 
the court determines that the levying or col-
lecting of a tax violates subsection (b), the 
State or Locality shall have the burden of prov-
ing, by a preponderance of the evidence, that 
the tax is the equivalent of a tax imposed on 
other commercial and industrial taxpayers 
under paragraph (2). 
‘‘(4) OTHER REMEDIES.—Nothing in this sub-
section shall limit any cause of action or remedy 
available under any other provision of Federal or 
State law. 
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‘‘(d) LIMITATIONS.—This section shall not be con-
strued to constitute the consent of Congress to State or 
Local taxation that would be prohibited in the absence of 
this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 805 of title 49, United States Code, is amend-
ed by inserting after the item relating to section 80504 
the following: 
‘‘80505. Tax discrimination against motor vehicle rental property.’’. 
Æ 
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