I 
113TH CONGRESS 
1ST SESSION H. R. 2543 
To protect consumers from discriminatory State taxes on motor vehicle 
rentals. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 27, 2013 
Mr. COHEN (for himself, Mr. GRAVES of Missouri, Ms. LOFGREN, Ms. MOORE, 
and Mr. ISRAEL) 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 2013’’. 
SEC. 2. 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. 
VerDate Mar 15 2010 
20:39 Jul 16, 2013
Jkt 029200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H2543.IH
H2543
tkelley on DSK3SPTVN1PROD with BILLS
SEC. 3. DEFINITIONS. 
(a) ASSESSMENT
AND
ASSESSMENT
JURISDIC-
TION.—The term ‘‘assessment’’ means valuation for a 
property tax levied by a taxing district. The term ‘‘assess-
ment jurisdiction’’ means a geographical area in a State 
or Locality used in determining the assessed value of prop-
erty for ad valorem taxation. 
(b) COMMERCIAL AND INDUSTRIAL PROPERTY.—The 
term ‘‘commercial and industrial property’’ means prop-
erty, other than motor vehicle rental property and land 
used primarily for agricultural purposes or timber grow-
ing, devoted to a commercial or industrial use, and subject 
to a property tax levy. 
(c) DISCRIMINATORY TAX.—The term ‘‘discrimina-
tory tax’’ includes the following: 
(1) A tax discriminates against the rental of 
motor vehicles if a State or Locality imposes the tax 
on, or with respect to— 
(A) the rental of motor vehicles but not on, 
or with respect to, the rental of more than 51 
percent of the rentals of other tangible personal 
property rented within the State or Locality, or 
(B) the rental of motor vehicles at a tax 
rate that exceeds the tax rate generally applica-
ble to at least 51 percent of the rentals of other 
VerDate Mar 15 2010 
20:39 Jul 16, 2013
Jkt 029200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2543.IH
H2543
tkelley on DSK3SPTVN1PROD with BILLS
tangible personal property within the same 
State or Locality. 
(2) A tax discriminates against the business of 
renting motor vehicles if a State or Locality imposes 
the tax on, or with respect to— 
(A) the business of renting motor vehicles 
but not on, or with respect to, the business of 
more than 51 percent of the other commercial 
and industrial taxpayers within the State or Lo-
cality, on the same tax base as the State or Lo-
cality employs with respect to the business of 
renting motor vehicles, or 
(B) the business of renting motor vehicles, 
at a tax rate that exceeds the tax rate generally 
applicable to the business of more than 51 per-
cent of the other commercial and industrial tax-
payers within the State or Local jurisdiction. 
(3) A tax discriminates against motor vehicle 
rental property if a State or Locality— 
(A) assesses motor vehicle rental property 
at a value that has a higher ratio to the true 
market value of the property than the ratio that 
the assessed value of other commercial and in-
dustrial property of the same type in the same 
assessment jurisdiction has to the true market 
VerDate Mar 15 2010 
20:39 Jul 16, 2013
Jkt 029200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2543.IH
H2543
tkelley on DSK3SPTVN1PROD with BILLS
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 
VerDate Mar 15 2010 
20:39 Jul 16, 2013
Jkt 029200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2543.IH
H2543
tkelley on DSK3SPTVN1PROD with BILLS
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 
VerDate Mar 15 2010 
20:39 Jul 16, 2013
Jkt 029200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2543.IH
H2543
tkelley on DSK3SPTVN1PROD with BILLS
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. 
VerDate Mar 15 2010 
20:39 Jul 16, 2013
Jkt 029200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2543.IH
H2543
tkelley on DSK3SPTVN1PROD with BILLS
(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— 
VerDate Mar 15 2010 
20:39 Jul 16, 2013
Jkt 029200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2543.IH
H2543
tkelley on DSK3SPTVN1PROD with BILLS
(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 
VerDate Mar 15 2010 
20:39 Jul 16, 2013
Jkt 029200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6301
E:\BILLS\H2543.IH
H2543
tkelley on DSK3SPTVN1PROD with BILLS