§11503. Tax discrimination against rail transportation property

(a) In this section-

(1) "assessment" means valuation for a property tax levied by a taxing district.

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

(3) "rail transportation property" means property, as defined by the Interstate Commerce Commission, owned or used by a rail carrier providing transportation subject to the jurisdiction of the Commission under subchapter I of chapter 105 of this title.

(4) "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 rail transportation property at a value that has a higher ratio to the true market value of the rail 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 clause (1) of this subsection.

(3) levy or collect an ad valorem property tax on rail transportation property at a tax rate that exceeds the tax rate applicable to commercial and industrial property in the same assessment jurisdiction.

(4) impose another tax that discriminates against a rail carrier providing transportation subject to the jurisdiction of the Commission under subchapter I of chapter 105 of this title.

(c) 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. Relief may be granted under this subsection only if the ratio of assessed value to true market value of rail 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. The burden of proof in determining assessed value and true market value is governed by State law. 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-

(1) an assessment of the rail transportation property at a value that has a higher ratio to the true market value of the rail transportation property than the assessed value of all other property subject to a property tax levy in the assessment jurisdiction has to the true market value of all other commercial and industrial property; and

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

( Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1445 .)

In subsection (a), the words "for purposes of" in 49:26c(3) are omitted as surplus. The words "such as a State or a county, city, township, or special purpose district . . . which is a unit" are omitted as unnecessary in view of the restatement. The words "all other commercial and industrial property" are omitted as unnecessary in view of the restatement. The words "real or personal" are omitted as surplus. The words "providing transportation subject to the jurisdiction of the Commission under subchapter I of chapter 105 of this title" are substituted for "subject to this part" for clarity and to conform to the revised title. The words "National Railroad Passenger Corporation" are omitted as unnecessary in view of the restatement and the Act establishing the Corporation.

In subsection (b), the words "Notwithstanding the provisions of section 202(b)" are omitted as unnecessary because of the restatement of the source provisions of section 10521(b)(4) of the revised title. The word "unreasonably" is substituted for "unreasonable and unjust" for consistency. See the revision note to section 10101 of the revised title. The words "is declared" are omitted as surplus. The words "may not do any of them" are substituted for "any action described in this subsection" and "It is unlawful for . . . to commit any of the following prohibited acts" for clarity. The word "political" is omitted as surplus. The words "for a State" are substituted for "on behalf of such State" for clarity. The words "for purposes of" in 49:26c(1) are omitted as surplus. The words "has a higher" are substituted for "bears a higher" for clarity. The words "that exceeds" are substituted for "higher than" for clarity. The words "that discriminates against" are substituted for "which results in discriminatory treatment" for clarity. The words "providing transportation subject to the jurisdiction of the Commission under subchapter I of chapter 105 of this title" are substituted for "subject to this part" for clarity and to conform to the revised title.

In subsection (c), the words "or of the constitution or laws of any State" are omitted as unnecessary in view of article VI of the Constitution. The words "has jurisdiction" are substituted for "shall have jurisdiction" for clarity. The words "such mandatory or prohibitive" and "interim equitable relief" are omitted as unnecessary in view of the restatement. The word "prevent" is substituted for "prevent, restrain, or terminate" to eliminate redundancy. The words "violation of" are substituted for "any acts in violation of" for clarity. The words "concurrent with" are substituted for "shall not be exclusive of" for clarity and to restate the rule in the positive. The words "United States" are substituted for "Federal" for consistency. The words "may have in the absence of this subsection" are omitted as unnecessary in view of the restatement. The words "Relief may be granted . . . only if" are substituted for "no relief may be granted . . . unless" for clarity and to restate the rule in the positive. The words "is governed by" are substituted for "shall be that declared by" for clarity. The word "if" is substituted for "in the event" for clarity. The words "cannot be determined" are substituted for "cannot be established" for clarity. The words "hearing the complaint that transportation property has been or is being assessed or taxed in contravention of the provisions of this section" are omitted as unnecessary in view of the restatement. The words "court shall find, as a violation of this section" are substituted for "court shall hold unlawful" for clarity. Paragraph (2)(b) of 49:26c is omitted as a temporary provision and included as a conforming provision in section 2(b) of the bill.

Effective Date

Section 2(b) of Pub. L. 95–473 provided: "Section 11503 of title 49, as stated in the first section of this Act, is effective after February 4, 1979."