§14502 — Title 49 Transportation | U.S. Code

Summary

Stops states and local tax authorities from treating property used by interstate motor carriers worse than other business property for property taxes. They must not value that carrier property at a higher percentage of its market value than other commercial and industrial property in the same area, collect taxes based on such a higher value, or charge a higher property tax rate on the carrier property. U.S. district courts can hear cases about these rules no matter the amount in dispute or the parties’ citizenship. Courts can order relief only if the carrier property’s assessed-to-market ratio is at least 5% higher than other commercial and industrial property in the same area. State law decides how to prove values. If a standard sales-ratio study can’t make the comparison, the court treats any higher assessed ratio or higher tax rate on carrier property than on all other taxable property as a violation. Definitions: assessment = the value used for a property tax; assessment jurisdiction = the geographic area used to set assessed values; motor carrier transportation property = property owned or used by a motor carrier that moves goods or people across state lines (as the Secretary defines); commercial and industrial property = business or industrial property, not transportation property or land used mainly for farming or timber, that is taxed.

Title 49, §14502

Transportation — Source: USLM XML via OLRC

(a)In this section, the following definitions apply:

(1)The term “assessment” means valuation for a property tax levied by a taxing district.

(2)The term “assessment jurisdiction” means a geographical area in a State used in determining the assessed value of property for ad valorem taxation.

(3)The term “motor carrier transportation property” means property, as defined by the Secretary, owned or used by a motor carrier providing transportation in interstate commerce whether or not such transportation is subject to jurisdiction under subchapter I of chapter 135.

(4)The term “commercial and industrial property” means property, other than transportation property and land used primarily for agricultural purposes or timber growing, devoted to a commercial or industrial use, and subject to a property tax levy.

(b)The following acts unreasonably burden and discriminate against interstate commerce and a State, subdivision of a State, or authority acting for a State or subdivision of a State may not do any of them:

(1)Assess motor carrier transportation property at a value that has a higher ratio to the true market value of the motor carrier transportation property than the ratio that the assessed value of other commercial and industrial property in the same assessment jurisdiction 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 motor carrier transportation property at a tax rate that exceeds the tax rate applicable to commercial and industrial property in the same assessment jurisdiction.

(c)(1)Notwithstanding section 1341 of title 28 and without regard to the amount in controversy or citizenship of the parties, a district court of the United States has jurisdiction, concurrent with other jurisdiction of courts of the United States and the States, to prevent a violation of subsection (b) of this section.

(2)Relief may be granted under this subsection only if the ratio of assessed value to true market value of motor carrier transportation property exceeds, by at least 5 percent, the ratio of assessed value to true market value of other commercial and industrial property in the same assessment jurisdiction.

(3)The burden of proof in determining assessed value and true market value is governed by State law.

(4)If the ratio of the assessed value of other commercial and industrial property in the assessment jurisdiction to the true market value of all other commercial and industrial property cannot be determined to the satisfaction of the district 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), the court shall find, as a violation of this section—

(A)an assessment of the motor carrier transportation property at a value that has a higher ratio to the true market value of the motor carrier transportation property than the assessment value of all other property subject to a property tax levy in the assessment jurisdiction has to the true market value of all such other property; and

(B)the collection of ad valorem property tax on the motor carrier transportation property at a tax rate that exceeds the tax ratio rate applicable to taxable property in the taxing district.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Provisions similar to those in this section were contained in section 11503a of this title prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a).

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Jan. 1, 1996, except as otherwise provided in Pub. L. 104–88, see section 2 of Pub. L. 104–88, set out as a note under section 1301 of this title.

§14502 Tax Discrimination Against Motor Carrier Transportation Property