S 3171 ISCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to exclude certain tax-exempt financing of energy transportation infrastructure from the private business use tests, and for other purposes.CommentsClose CommentsPermalink

June 19, 2008CommentsClose CommentsPermalink

Mr. BARRASSO introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to exclude certain tax-exempt financing of energy transportation infrastructure from the private business use tests, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. TAX-EXEMPT FINANCING OF ENERGY TRANSPORTATION INFRASTRUCTURE NOT SUBJECT TO PRIVATE BUSINESS USE TESTS.

(a) In General- Section 141(b)(6) of the Internal Revenue Code of 1986 (defining private business use) is amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(C) EXCEPTION FOR CERTAIN ENERGY TRANSPORTATION INFRASTRUCTURE-CommentsClose CommentsPermalink





‘(i) IN GENERAL- For purposes of the 1st sentence of subparagraph (A), the operation or use of any property described in clause (ii) by any person which is not a governmental unit shall not be considered a private business use.CommentsClose CommentsPermalink





‘(ii) PROPERTY DESCRIBED- For purposes of clause (i), the following property is described in this clause:CommentsClose CommentsPermalink





‘(I) Any tangible property used to transmit electricity at 230 or more kilovolts if such property is placed in service as part of a State or multi-State effort to improve interstate electricity transmission and is physically located in not less than 2 States.CommentsClose CommentsPermalink





‘(II) Any tangible property used to transmit electricity generated from renewable resources.CommentsClose CommentsPermalink





‘(III) Any tangible property used as a transmission pipeline for crude oil or diesel fuel produced from coal or other synthetic petroleum products produced from coal if such property is placed in service as part of a State or multi-State effort to improve the transportation of crude oil or diesel fuel produced from coal or other synthetic petroleum products produced from coal.CommentsClose CommentsPermalink





‘(IV) Any tangible property used as a carbon dioxide transmission pipeline if such property is placed in service as part of a State or multi-State effort to improve interstate or intrastate efforts to develop transportation infrastructure for purposes of permanently sequestering carbon dioxide.’.CommentsClose CommentsPermalink





(b) Exception to Private Loan Financing Test- Section 141(c)(2) of the Internal Revenue Code of 1986 (relating to exception for tax assessment, etc., loans) is amended--CommentsClose CommentsPermalink





(1) by striking ‘or’ at the end of subparagraph (B),CommentsClose CommentsPermalink





(2) by striking the period at the end of subparagraph (C) and inserting ‘, or’, andCommentsClose CommentsPermalink





(3) by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(D) enables the borrower to finance any property described in subsection (b)(6)(C)(ii).’.CommentsClose CommentsPermalink





(c) Reduction of State Volume Cap by Amount of Energy Transportation Infrastructure Financing- Section 146 of the Internal Revenue Code of 1986 (relating to volume cap) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(o) Reduction for Energy Transportation Infrastructure Financing- The volume cap of any issuing authority for any calendar year shall be reduced by the amount of bonds issued as part of an issue by such authority to provide for property described in section 141(b)(6)(C)(ii).’.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act and before December 31, 2015.CommentsClose CommentsPermalink

SEC. 2. LIMITATION ON DISCRIMINATORY TAXATION OF CERTAIN PIPELINE PROPERTY.

(a) Definitions- For purposes of section:CommentsClose CommentsPermalink





(1) ASSESSMENT- The term ‘assessment’ means valuation for a property tax levied by a taxing authority.CommentsClose CommentsPermalink





(2) ASSESSMENT JURISDICTION- The term ‘assessment jurisdiction’ means a geographical area used in determining the assessed value of property for ad valorem taxation.CommentsClose CommentsPermalink





(3) COMMERCIAL AND INDUSTRIAL PROPERTY- The term ‘commercial and industrial property’ means property (excluding pipeline property, public utility property, and land used primarily for agricultural purposes or timber growth) devoted to commercial or industrial use and subject to a property tax levy.CommentsClose CommentsPermalink





(4) PIPELINE PROPERTY- The term ‘pipeline property’ means all property, real, personal, and intangible, owned or used by a natural gas pipeline providing transportation or storage of natural gas, subject to the jurisdiction of the Federal Energy Regulatory Commission.CommentsClose CommentsPermalink





(5) PUBLIC UTILITY PROPERTY- The term ‘public utility property’ means property (excluding 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.CommentsClose CommentsPermalink





(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 State, or any other taxing authority (including a taxing jurisdiction and a taxing district) may not do any of the following such acts:CommentsClose CommentsPermalink





(1) Assess pipeline property at a value that has a higher ratio to the true market value of the pipeline 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.CommentsClose CommentsPermalink





(2) Levy or collect a tax on an assessment that may not be made under paragraph (1).CommentsClose CommentsPermalink





(3) Levy or collect an ad valorem property tax on pipeline property at a tax rate that exceeds the tax rate applicable to commercial and industrial property in the same assessment jurisdiction.CommentsClose CommentsPermalink





(4) Impose any other tax that discriminates against a pipeline providing transportation subject to the jurisdiction of the Federal Energy Regulatory Commission.CommentsClose CommentsPermalink





(c) Jurisdiction of Courts; Relief-CommentsClose CommentsPermalink





(1) GRANT OF JURISDICTION- Notwithstanding section 1341 of title 28, United States Code, and notions of comity, and without regard to the amount in controversy or citizenship of the 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 subsection (b).CommentsClose CommentsPermalink





(2) RELIEF- Except as otherwise provided in this paragraph, relief may be granted under this Act only if the ratio of assessed value to true market value of pipeline 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. 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 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 subsection (b) for which relief under this section may be granted:CommentsClose CommentsPermalink





(A) An assessment of the pipeline property at a value that has a higher ratio of assessed value to the true market value of the pipeline property than the ratio of the assessed value of all other property (excluding public utility property) subject to a property tax levy in the assessment jurisdiction has to the true market value of all other property (excluding public utility property).CommentsClose CommentsPermalink





(B) The collection of an ad valorem property tax on the pipeline property at a tax rate that exceeds the tax rate applicable to all other taxable property (excluding public utility property) in the taxing jurisdiction.CommentsClose CommentsPermalink

SEC. 3. NATURAL GAS PIPELINE INTEGRITY REASSESSMENT INTERVALS BASED ON RISK.

(a) In General- Section 60109(c)(3)(B) of title 49, United States Code, is amended by inserting ‘, until the Secretary issues regulations basing the reassessment intervals on technical data, risk factors, and engineering analysis, consistent with the recommendations of the Comptroller General of the United States in Report 06-945’ after ‘subparagraph (A)’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall take effect on the date of the enactment of this Act.CommentsClose CommentsPermalink