49 U.S.C. § 14502 — Tax discrimination against motor carrier

Page 515 TITLE 49—TRANSPORTATION § 14502 (1) IN GENERAL.—No State or political sub- division thereof and no interstate agency or other political agency of 2 or more States shall enact or enforce any law, rule, regula- tion, standard or other provision having the force and effect of law requiring a license or fee on account of the fact that a motor vehicle is providing pre-arranged ground transpor- tation service if the motor carrier providing such service— (A) meets all applicable registration re- quirements under chapter 139 for the inter- state transportation of passengers; (B) meets all applicable vehicle and intra- state passenger licensing requirements of the State or States in which the motor car- rier is domiciled or registered to do business; and (C) is providing such service pursuant to a contract for— (i) transportation by the motor carrier from one State, including intermediate stops, to a destination in another State; or (ii) transportation by the motor carrier from one State, including intermediate stops in another State, to a destination in the original State. (2) INTERMEDIATE STOP DEFINED.—In this sec- tion, the term ‘‘intermediate stop’’, with re- spect to transportation by a motor carrier, means a pause in the transportation in order for one or more passengers to engage in per- sonal or business activity, but only if the driv- er providing the transportation to such pas- senger or passengers does not, before resuming the transportation of such passenger (or at least 1 of such passengers), provide transpor- tation to any other person not included among the passengers being transported when the pause began. (3) MATTERS NOT COVERED.—Nothing in this subsection shall be construed— (A) as subjecting taxicab service to regula- tion under chapter 135 or section 31138; (B) as prohibiting or restricting an airport, train, or bus terminal operator from con- tracting to provide preferential access or fa- cilities to one or more providers of pre-ar- ranged ground transportation service; and (C) as restricting the right of any State or political subdivision of a State to require, in a nondiscriminatory manner, that any indi- vidual operating a vehicle providing pre- arranged ground transportation service orig- inating in the State or political subdivision have submitted to pre-licensing drug testing or a criminal background investigation of the records of the State in which the oper- ator is domiciled, by the State or political subdivision by which the operator is licensed to provide such service, or by the motor car- rier providing such service, as a condition of providing such service. (Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995, 109 Stat. 899; amended Pub. L. 105–178, title IV, § 4016, June 9, 1998, 112 Stat. 412; Pub. L. 105–277, div. C, title I, § 106, Oct. 21, 1998, 112 Stat. 2681–586; Pub. L. 107–298, § 2, Nov. 26, 2002, 116 Stat. 2342; Pub. L. 109–59, title IV, §§ 4105(a), 4206(a), Aug. 10, 2005, 119 Stat. 1717, 1754; Pub. L. 114–94, div. A, title V, § 5514, Dec. 4, 2015, 129 Stat. 1557.) Editorial Notes REFERENCES IN TEXT The Surface Freight Forwarder Deregulation Act of 1986, referred to in subsec. (b)(2), is Pub. L. 99–521, Oct. 22, 1986, 100 Stat. 2993. For complete classification of this Act to the Code, see Short Title of 1986 Amend- ment note set out under section 10101 of this title and Tables. PRIOR PROVISIONS Provisions similar to those in this section were con- tained in section 11501 of this title prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a). AMENDMENTS 2015—Subsec. (c)(2)(C). Pub. L. 114–94 substituted ‘‘the regulation of tow truck operations’’ for ‘‘the price of for-hire motor vehicle transportation by a tow truck, if such transportation is’’. 2005—Subsec. (c)(2)(B). Pub. L. 109–59, § 4206(a), in- serted ‘‘intrastate’’ before ‘‘transportation’’. Subsec. (c)(5). Pub. L. 109–59, § 4105(a), added par. (5). 2002—Subsec. (d). Pub. L. 107–298 added subsec. (d). 1998—Subsec. (a). Pub. L. 105–178 reenacted heading without change and amended text of subsec. (a) gen- erally. Prior to amendment, text read as follows: ‘‘No State or political subdivision thereof and no interstate agency or other political agency of 2 or more States shall enact or enforce any law, rule, regulation, stand- ard, or other provision having the force and effect of law relating to scheduling of interstate or intrastate transportation (including discontinuance or reduction in the level of service) provided by motor carrier of pas- sengers subject to jurisdiction under subchapter I of chapter 135 of this title on an interstate route or relat- ing to the implementation of any change in the rates for such transportation or for any charter transpor- tation except to the extent that notice, not in excess of 30 days, of changes in schedules may be required. This subsection shall not apply to intrastate commuter bus operations.’’ Subsec. (a)(1). Pub. L. 105–277 substituted ‘‘oper- ations, or to intrastate bus transportation of any na- ture in the State of Hawaii’’ for ‘‘operations’’ in con- cluding provisions. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2015 AMENDMENT Amendment by Pub. L. 114–94 effective Oct. 1, 2015, see section 1003 of Pub. L. 114–94, set out as a note under section 5313 of Title 5, Government Organization and Employees. EFFECTIVE DATE Section effective Jan. 1, 1996, except as otherwise pro- vided 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 (a) DEFINITIONS.—In this section, the following definitions apply: (1) ASSESSMENT.—The term ‘‘assessment’’ means valuation for a property tax levied by a taxing district. (2) ASSESSMENT JURISDICTION.—The term ‘‘assessment jurisdiction’’ means a geo- graphical area in a State used in determining the assessed value of property for ad valorem taxation. (3) MOTOR CARRIER TRANSPORTATION PROP- ERTY.—The term ‘‘motor carrier transpor- Page 516 TITLE 49—TRANSPORTATION § 14503 tation 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) COMMERCIAL AND INDUSTRIAL PROPERTY.— The term ‘‘commercial and industrial prop- erty’’ means property, other than transpor- tation property and land used primarily for agricultural purposes or timber growing, de- voted to a commercial or industrial use, and subject to a property tax levy. (b) ACTS BURDENING INTERSTATE COMMERCE.— The following acts unreasonably burden and dis- criminate against interstate commerce and a State, subdivision of a State, or authority act- ing for a State or subdivision of a State may not do any of them: (1) EXCESSIVE VALUATION OF PROPERTY.—As- sess motor carrier transportation property at a value that has a higher ratio to the true market value of the motor carrier transpor- tation property than the ratio that the as- sessed value of other commercial and indus- trial property in the same assessment jurisdic- tion has to the true market value of the other commercial and industrial property. (2) TAX ON ASSESSMENT.—Levy or collect a tax on an assessment that may not be made under paragraph (1). (3) AD VALOREM TAX.—Levy or collect an ad valorem property tax on motor carrier trans- portation property at a tax rate that exceeds the tax rate applicable to commercial and in- dustrial property in the same assessment ju- risdiction. (c) JURISDICTION.— (1) IN GENERAL.—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 juris- diction of courts of the United States and the States, to prevent a violation of subsection (b) of this section. (2) LIMITATION IN RELIEF.—Relief may be granted under this subsection only if the ratio of assessed value to true market value of motor carrier transportation property ex- ceeds, by at least 5 percent, the ratio of as- sessed value to true market value of other commercial and industrial property in the same assessment jurisdiction. (3) BURDEN OF PROOF.—The burden of proof in determining assessed value and true market value is governed by State law. (4) VIOLATION.—If the ratio of the assessed value of other commercial and industrial prop- erty in the assessment jurisdiction to the true market value of all other commercial and in- dustrial property cannot be determined to the satisfaction of the district court through the random-sampling method known as a sales as- sessment 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 prop- erty subject to a property tax levy in the as- sessment 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. (Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995, 109 Stat. 900.) Editorial Notes PRIOR PROVISIONS Provisions similar to those in this section were con- tained 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 pro- vided in Pub. L. 104–88, see section 2 of Pub. L. 104–88, set out as a note under section 1301 of this title. § 14503. Withholding State and local income tax by certain carriers (a) SINGLE STATE TAX WITHHOLDING.— (1) IN GENERAL.—No part of the compensa- tion paid by a motor carrier providing trans- portation subject to jurisdiction under sub- chapter I of chapter 135 or by a motor private carrier to an employee who performs regularly assigned duties in 2 or more States as such an employee with respect to a motor vehicle shall be subject to the income tax laws of any State or subdivision of that State, other than the State or subdivision thereof of the employee’s residence. (2) EMPLOYEE DEFINED.—In this subsection, the term ‘‘employee’’ has the meaning given such term in section 31132. (b) SPECIAL RULES.— (1) CALCULATION OF EARNINGS.—In this sub- section, an employee is deemed to have earned more than 50 percent of pay in a State or sub- division of that State in which the time worked by the employee in the State or sub- division is more than 50 percent of the total time worked by the employee while employed during the calendar year. (2) WATER CARRIERS.—A water carrier pro- viding transportation subject to jurisdiction under subchapter II of chapter 135 shall file in- come tax information returns and other re- ports only with— (A) the State and subdivision of residence of the employee (as shown on the employ- ment records of the carrier); and (B) the State and subdivision in which the employee earned more than 50 percent of the pay received by the employee from the car- rier during the preceding calendar year. (3) APPLICABILITY TO SAILORS.—This sub- section applies to pay of a master, officer, or sailor who is a member of the crew on a vessel engaged in foreign, coastwise, intercoastal, or