I 
114TH CONGRESS 
1ST SESSION H. R. 3663 
To prevent certain discriminatory taxation of natural gas pipeline property. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 1, 2015 
Mr. FLORES (for himself and Mr. GENE GREEN of Texas) introduced the 
following bill; which was referred to the Committee on the Judiciary 
A BILL 
To prevent certain discriminatory taxation of natural gas 
pipeline property. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. LIMITATION ON DISCRIMINATORY TAXATION 
OF NATURAL GAS PIPELINE PROPERTY. 
(a) DEFINITIONS.—For purposes of section: 
(1) ASSESSMENT.—The term ‘‘assessment’’ 
means valuation for a property tax levied by a taxing 
authority. 
(2) ASSESSMENT
JURISDICTION.—The term 
‘‘assessment jurisdiction’’ means a geographical area 
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used in determining the assessed value of property 
for ad valorem taxation. 
(3) COMMERCIAL
AND
INDUSTRIAL
PROP-
ERTY.—The term ‘‘commercial and industrial prop-
erty’’ means property (excluding natural gas pipeline 
property, public utility property, and land used pri-
marily for agricultural purposes or timber growth) 
devoted to commercial or industrial use and subject 
to a property tax levy. 
(4) NATURAL GAS PIPELINE PROPERTY.—The 
term ‘‘natural gas pipeline property’’ means all 
property, real, personal, and intangible, used by a 
natural gas pipeline providing transportation or stor-
age of natural gas, subject to the jurisdiction of the 
Federal Energy Regulatory Commission. 
(5) PUBLIC
UTILITY
PROPERTY.—The term 
‘‘public utility property’’ means property (excluding 
natural gas pipeline property) that is devoted to 
public service and is owned or used by any entity 
that performs a public service and is regulated by 
any governmental agency. 
(b) DISCRIMINATORY ACTS.—The acts specified in 
this subsection unreasonably burden and discriminate 
against interstate commerce. A State, subdivision of a 
State, authority acting for a State or subdivision of a 
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State, or any other taxing authority (including a taxing 
jurisdiction and a taxing district) may not do any of the 
following such acts: 
(1) Assess natural gas pipeline property at a 
value that has a higher ratio to the true market 
value of the natural gas pipeline property than the 
ratio that the assessed value of other commercial 
and industrial property in the same assessment ju-
risdiction has to the true market value of the other 
commercial and industrial property. 
(2) Levy or collect a tax on an assessment that 
may not be made under paragraph (1). 
(3) Levy or collect an ad valorem property tax 
on natural gas pipeline property at a tax rate that 
exceeds the tax rate applicable to commercial and in-
dustrial property in the same assessment jurisdic-
tion. 
(4) Impose any other tax that discriminates 
against a natural gas pipeline providing transpor-
tation subject to the jurisdiction of the Federal En-
ergy Regulatory Commission. 
SEC. 2. JURISDICTION OF COURTS; RELIEF. 
(a) GRANT OF JURISDICTION.—Notwithstanding sec-
tion 1341 of title 28, United States Code, and without 
regard to the amount in controversy or citizenship of the 
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parties, the district courts of the United States shall have 
jurisdiction, concurrent with other jurisdiction of the 
courts of the United States, of States, and of all other 
taxing authorities and taxing jurisdictions, to prevent a 
violation of section 1. 
(b) RELIEF.—Except as otherwise provided in this 
subsection, relief may be granted under this Act only if 
the ratio of assessed value to true market value of natural 
gas pipeline property exceeds by at least 5 percent the 
ratio of assessed value to true market value of other com-
mercial and industrial property in the same assessment 
jurisdiction. If the ratio of the assessed value of other 
commercial and industrial property in the assessment ju-
risdiction to the true market value of all other commercial 
and industrial property cannot be determined to the satis-
faction of the court through the random-sampling method 
known as a sales assessment ratio study (to be carried 
out under statistical principles applicable to such a study), 
each of the following shall be a violation of section 1 for 
which relief under this Act may be granted: 
(1) An assessment of the natural gas pipeline 
property at a value that has a higher ratio of as-
sessed value to the true market value of the natural 
gas pipeline property than the ratio of the assessed 
value of all other property (excluding public utility 
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property) subject to a property tax levy in the as-
sessment jurisdiction has to the true market value of 
all other property (excluding public utility property). 
(2) The collection of an ad valorem property tax 
on the natural gas pipeline property at a tax rate 
that exceeds the tax rate applicable to all other tax-
able property (excluding public utility property) in 
the taxing jurisdiction. 
Æ 
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