value of the other commercial and industrial 
property, 
(B) levies or collects a tax on an assess-
ment that may not be made under subpara-
graph (A), or 
(C) levies or collects an ad valorem prop-
erty tax on motor vehicle rental property at a 
tax rate that exceeds the tax rate applicable to 
commercial and industrial property in the same 
assessment jurisdiction. 
(d) 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, and with the authority to impose, levy or collect 
taxes. 
(e) MOTOR VEHICLE.—The term ‘‘motor vehicle’’ has 
the same meaning as in section 13102(16) of title 49 of 
the United States Code. 
(f) OTHER COMMERCIAL
AND INDUSTRIAL TAX-
PAYERS.—The term ‘‘other commercial and industrial tax-
payers’’ means persons or entities who are engaged in 
trade or business within a State or Locality and who are 
subject to some form of taxation by a State or Locality. 
(g) RENTAL OF MOTOR VEHICLES.—The term ‘‘rent-
al of motor vehicles’’ means the rental of a motor vehicle 
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that is given by the owner of the motor vehicle for exclu-
sive use to another for not longer than 180 days for valu-
able consideration and only includes the rental of motor 
vehicles with a pre-arranged driver or motor vehicles with-
out a driver, but shall not include taxi cab service as de-
fined by section 13102(20) of title 49 of the United States 
Code. 
(h) STATE.—The term ‘‘State’’ means any of the sev-
eral States, the District of Columbia or any territory or 
possession of the United States, or any governmental enti-
ty or person acting on behalf of such State, and with the 
authority to impose, levy or collect taxes. 
(i) 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, regardless of whether such charge 
is denominated as a tax, a fee, or any other type of exac-
tion. The term ‘‘tax’’ does not include any charge imposed 
by a State or Locality with respect to a concession agree-
ment at a federally assisted airport (provided the agree-
ment does not violate the revenue diversion provisions of 
section 40116(d) of title 49 of the United States Code, 
or the registration, licensing, or inspection of motor vehi-
cles, if the charge is imposed generally with respect to 
motor vehicles, without regard to whether such vehicles 
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are used in the business of renting motor vehicles within 
the State or Locality. 
(j) TAX BASE.—The term ‘‘tax base’’ means the re-
ceipts, income, value, weight, or other measure of a tax 
to which the rate is applied. The ‘‘tax base’’ of a tax im-
posed on a per unit basis is the unit. 
(k) TAX RATE GENERALLY APPLICABLE TO OTHER 
COMMERCIAL AND INDUSTRIAL TAXPAYERS.—The term 
‘‘tax rate generally applicable to other commercial and in-
dustrial taxpayers’’ means the lower of— 
(1) the tax rate imposed on the greatest num-
ber of other commercial and industrial taxpayers or 
their customers, or 
(2) the unweighted average rate at which the 
tax is imposed. 
SEC. 4. PROHIBITED ACTS. 
No State or Locality may levy or collect a discrimina-
tory tax on the rental of motor vehicles, the business of 
renting motor vehicles, or motor vehicle rental property. 
SEC. 5. REMEDIES. 
(a) JURISDICTION.—Notwithstanding any provision 
of section 1341 of title 28, United States Code, or the 
constitution or laws of any State, the district courts of 
the United States shall have jurisdiction, without regard 
to amount in controversy or citizenship of the parties, to 
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grant such mandatory or prohibitive injunctive relief, in-
terim equitable relief, and declaratory judgments as may 
be necessary to prevent, restrain or terminate any acts in 
violation of this Act, except that such jurisdiction shall 
not be exclusive of the jurisdiction which any Federal or 
State court may have in the absence of this section. 
(b) BURDEN OF PROOF.—The burden of proof in any 
proceeding brought under this Act shall be upon the party 
seeking relief and shall be by a preponderance of the evi-
dence on all issues of fact. 
(c) RELIEF.—In granting relief against a tax which 
is imposed in violation of section 4, the court shall strike 
the tax in its entirety, unless the court finds the tax— 
(1) is the equivalent of a specific tax imposed 
on at least 51 percent of other commercial and in-
dustrial taxpayers, and 
(2) is not discriminatory in effect. If such tax 
is discriminatory in effect with respect to tax rate or 
amount only, the court shall strike only the discrimi-
natory or excessive portion of the tax as determined 
by the court. Notwithstanding subsection (b) of this 
section, the burden of proof on the issue of whether 
a tax is the equivalent of a tax imposed on other 
commercial and industrial taxpayers shall be on the 
State or Locality that imposes the tax. 
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(d) CAUSE OF ACTION.— 
(1) An action to enforce the provisions of this 
Act may be brought only by a person who— 
(A) rents motor vehicles to another person, 
(B) is engaged in the business of renting 
motor vehicles, 
(C) owns motor vehicle rental property, or 
(D) rents a motor vehicle from another 
person. 
(2) A person who rents a motor vehicle from 
another person and is seeking relief under this Act 
may only bring a cause of action against the State 
or Locality imposing the discriminatory tax as de-
fined by this Act. 
SEC. 6. LIMITATIONS. 
This Act shall not be construed to constitute the con-
sent of Congress to State or Local taxation that would 
be prohibited in the absence of this Act. 
SEC. 7. EFFECTIVE DATE. 
(a) EFFECTIVE DATE.—The provisions of this Act 
shall become effective on the date of the enactment of this 
Act. 
(b) EXCLUSION.—Discriminatory taxes as defined by 
this Act are not prohibited under this Act if— 
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(1) State or Local legislative authorization for 
a discriminatory tax that is in effect as of the date 
of the enactment of this Act, does not lapse, the tax 
rate does not increase and the tax base for such tax 
does not change; or 
(2) a State enacts legislation by the date of the 
enactment of this Act— 
(A) that specifically authorizes a Locality 
to impose a discriminatory tax; 
(B) the Locality imposes the authorized 
tax within five years from the date the State 
enacted the authorization for the Local tax; and 
(C) the tax rate imposed by the Locality is 
not increased and the tax base for such tax 
does not change. 
Æ 
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