---
kind: "section"
citation: "49 U.S.C. § 11501"
title: "49"
title_heading: "Transportation"
number: "11501"
heading: "Tax discrimination against rail transportation property"
release: "119-102"
url: "https://uscodex.org/usc/49/11501"
units:
  - "Subtitle IV — Interstate Transportation"
  - "Part A — Rail"
  - "Chapter 115 — Federal-State Relations"
---

# §11501. Tax discrimination against rail transportation property

- (a) In this section—
  - (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](/usc/49/10102.md?p=8) used in determining the assessed value of property for ad valorem taxation;
  - (3) the term “rail transportation property” means property, as defined by the [Board](/usc/49/10102.md?p=1), owned or used by a [rail carrier](/usc/49/10102.md?p=5) providing [transportation](/usc/49/10102.md?p=9) subject to the jurisdiction of the [Board](/usc/49/10102.md?p=1) under this part; and
  - (4) the term “commercial and industrial property” means property, other than [transportation](/usc/49/10102.md?p=9) 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](/usc/49/10102.md?p=8), subdivision of a [State](/usc/49/10102.md?p=8), or authority acting for a [State](/usc/49/10102.md?p=8) or subdivision of a [State](/usc/49/10102.md?p=8) may not do any of them:
  - (1) Assess [rail transportation property](#a-3) at a value that has a higher ratio to the true market value of the [rail transportation property](#a-3) than the ratio that the assessed value of other [commercial and industrial property](#a-4) in the same [assessment jurisdiction](#a-2) has to the true market value of the other [commercial and industrial property](#a-4).
  - (2) Levy or collect a tax on an [assessment](#a-1) that may not be made under paragraph (1) of this subsection.
  - (3) Levy or collect an ad valorem property tax on [rail transportation property](#a-3) at a tax [rate](/usc/49/10102.md?p=7) that exceeds the tax [rate](/usc/49/10102.md?p=7) applicable to [commercial and industrial property](#a-4) in the same [assessment jurisdiction](#a-2).
  - (4) Impose another tax that discriminates against a [rail carrier](/usc/49/10102.md?p=5) providing [transportation](/usc/49/10102.md?p=9) subject to the jurisdiction of the [Board](/usc/49/10102.md?p=1) under this part.
- (c) Notwithstanding [section 1341 of title 28](/usc/28/1341.md) and without regard to the amount in controversy or citizenship of the parties, a district court of the [United States](/usc/49/10102.md?p=10) has jurisdiction, concurrent with other jurisdiction of courts of the [United States](/usc/49/10102.md?p=10) and the [States](/usc/49/10102.md?p=8), to prevent a violation of [subsection (b)](#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](#a-3) exceeds by at least 5 percent the ratio of assessed value to true market value of other [commercial and industrial property](#a-4) in the same [assessment jurisdiction](#a-2). The burden of proof in determining assessed value and true market value is governed by [State](/usc/49/10102.md?p=8) law. If the ratio of the assessed value of other [commercial and industrial property](#a-4) in the [assessment jurisdiction](#a-2) to the true market value of all other [commercial and industrial property](#a-4) cannot be determined to the satisfaction of the district court through the random-sampling method known as a sales [assessment](#a-1) 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](#a-1) of the [rail transportation property](#a-3) at a value that has a higher ratio to the true market value of the [rail transportation property](#a-3) than the assessed value of all other property subject to a property tax levy in the [assessment jurisdiction](#a-2) has to the true market value of all other [commercial and industrial property](#a-4); and
  - (2) the collection of an ad valorem property tax on the [rail transportation property](#a-3) at a tax [rate](/usc/49/10102.md?p=7) that exceeds the tax ratio [rate](/usc/49/10102.md?p=7) applicable to taxable property in the taxing district.

## Source credit

(Added Pub. L. 104–88, title I, § 102(a), Dec. 29, 1995, 109 Stat. 843.)

## Notes

### Editorial Notes

### Prior Provisions

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

A prior section 11501, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1444; Pub. L. 96–448, title II, § 214(a)–(c)(1), Oct. 14, 1980, 94 Stat. 1913, 1915; Pub. L. 97–261, § 17(a), Sept. 20, 1982, 96 Stat. 1117; Pub. L. 99–521, § 11(a), Oct. 22, 1986, 100 Stat. 2997; Pub. L. 103–272, § 4(j)(34), July 5, 1994, 108 Stat. 1370; Pub. L. 103–305, title VI, § 601(c), Aug. 23, 1994, 108 Stat. 1606; Pub. L. 103–311, title II, § 211(b)(2), Aug. 26, 1994, 108 Stat. 1689, related to Interstate Commerce Commission authority over intrastate transportation, prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a). See section 14501 of this title.

### 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.