-CITE-

49 USC CHAPTER 145 - FEDERAL-STATE RELATIONS 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART B - MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT

FORWARDERS

CHAPTER 145 - FEDERAL-STATE RELATIONS

-HEAD-

CHAPTER 145 - FEDERAL-STATE RELATIONS

-MISC1-

Sec.

14501. Federal authority over intrastate transportation.

14502. Tax discrimination against motor carrier

transportation property.

14503. Withholding State and local income tax by certain

carriers.

14504. Registration of motor carriers by a State.

14505. State tax.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in section 113 of this title.

-End-

-CITE-

49 USC Sec. 14501 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART B - MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT

FORWARDERS

CHAPTER 145 - FEDERAL-STATE RELATIONS

-HEAD-

Sec. 14501. Federal authority over intrastate transportation

-STATUTE-

(a) Motor Carriers of Passengers. -

(1) Limitation on state law. - 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, standard, or other provision having the force and

effect of law relating to -

(A) scheduling of interstate or intrastate transportation

(including discontinuance or reduction in the level of service)

provided by a motor carrier of passengers subject to

jurisdiction under subchapter I of chapter 135 of this title on

an interstate route;

(B) the implementation of any change in the rates for such

transportation or for any charter transportation except to the

extent that notice, not in excess of 30 days, of changes in

schedules may be required; or

(C) the authority to provide intrastate or interstate charter

bus transportation.

This paragraph shall not apply to intrastate commuter bus

operations, or to intrastate bus transportation of any nature in

the State of Hawaii.

(2) Matters not covered. - Paragraph (1) shall not restrict the

safety regulatory authority of a State with respect to motor

vehicles, the authority of a State to impose highway route

controls or limitations based on the size or weight of the motor

vehicle, or the authority of a State to regulate carriers with

regard to minimum amounts of financial responsibility relating to

insurance requirements and self-insurance authorization.

(b) Freight Forwarders and Brokers. -

(1) General rule. - Subject to paragraph (2) of this

subsection, no State or political subdivision thereof and no

intrastate agency or other political agency of 2 or more States

shall enact or enforce any law, rule, regulation, standard, or

other provision having the force and effect of law relating to

intrastate rates, intrastate routes, or intrastate services of

any freight forwarder or broker.

(2) Continuation of hawaii's authority. - Nothing in this

subsection and the amendments made by the Surface Freight

Forwarder Deregulation Act of 1986 shall be construed to affect

the authority of the State of Hawaii to continue to regulate a

motor carrier operating within the State of Hawaii.

(c) Motor Carriers of Property. -

(1) General rule. - Except as provided in paragraphs (2) and

(3), a State, political subdivision of a State, or political

authority of 2 or more States may not enact or enforce a law,

regulation, or other provision having the force and effect of law

related to a price, route, or service of any motor carrier (other

than a carrier affiliated with a direct air carrier covered by

section 41713(b)(4)) or any motor private carrier, broker, or

freight forwarder with respect to the transportation of property.

(2) Matters not covered. - Paragraph (1) -

(A) shall not restrict the safety regulatory authority of a

State with respect to motor vehicles, the authority of a State

to impose highway route controls or limitations based on the

size or weight of the motor vehicle or the hazardous nature of

the cargo, or the authority of a State to regulate motor

carriers with regard to minimum amounts of financial

responsibility relating to insurance requirements and

self-insurance authorization;

(B) does not apply to the transportation of household goods;

and

(C) does not apply to the authority of a State or a political

subdivision of a State to enact or enforce a law, regulation,

or other provision relating to the price of for-hire motor

vehicle transportation by a tow truck, if such transportation

is performed without the prior consent or authorization of the

owner or operator of the motor vehicle.

(3) State standard transportation practices. -

(A) Continuation. - Paragraph (1) shall not affect any

authority of a State, political subdivision of a State, or

political authority of 2 or more States to enact or enforce a

law, regulation, or other provision, with respect to the

intrastate transportation of property by motor carriers,

related to -

(i) uniform cargo liability rules,

(ii) uniform bills of lading or receipts for property being

transported,

(iii) uniform cargo credit rules,

(iv) antitrust immunity for joint line rates or routes,

classifications, mileage guides, and pooling, or

(v) antitrust immunity for agent-van line operations (as

set forth in section 13907),

if such law, regulation, or provision meets the requirements of

subparagraph (B).

(B) Requirements. - A law, regulation, or provision of a

State, political subdivision, or political authority meets the

requirements of this subparagraph if -

(i) the law, regulation, or provision covers the same

subject matter as, and compliance with such law, regulation,

or provision is no more burdensome than compliance with, a

provision of this part or a regulation issued by the

Secretary or the Board under this part; and

(ii) the law, regulation, or provision only applies to a

carrier upon request of such carrier.

(C) Election. - Notwithstanding any other provision of law, a

carrier affiliated with a direct air carrier through common

controlling ownership may elect to be subject to a law,

regulation, or provision of a State, political subdivision, or

political authority under this paragraph.

(4) Nonapplicability to hawaii. - This subsection shall not

apply with respect to the State of Hawaii.

(d) Pre-Arranged Ground Transportation. -

(1) In general. - 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, 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 transportation service if the motor

carrier providing such service -

(A) meets all applicable registration requirements under

chapter 139 for the interstate transportation of passengers;

(B) meets all applicable vehicle and intrastate passenger

licensing requirements of the State or States in which the

motor carrier 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 section, the term

"intermediate stop", with respect to transportation by a motor

carrier, means a pause in the transportation in order for one or

more passengers to engage in personal or business activity, but

only if the driver providing the transportation to such passenger

or passengers does not, before resuming the transportation of

such passenger (or at least 1 of such passengers), provide

transportation 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 regulation under chapter

135 or section 31138;

(B) as prohibiting or restricting an airport, train, or bus

terminal operator from contracting to provide preferential

access or facilities to one or more providers of pre-arranged

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 individual operating a vehicle providing

prearranged ground transportation service originating 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 operator is domiciled, by the

State or political subdivision by which the operator is

licensed to provide such service, or by the motor carrier

providing such service, as a condition of providing such

service.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 103, Dec. 29, 1995, 109 Stat.

899; amended Pub. L. 105-178, title IV, Sec. 4016, June 9, 1998,

112 Stat. 412; Pub. L. 105-277, div. C, title I, Sec. 106, Oct. 21,

1998, 112 Stat. 2681-586; Pub. L. 107-298, Sec. 2, Nov. 26, 2002,

116 Stat. 2342.)

-REFTEXT-

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 Amendment note set out under section 10101 of

this title and Tables.

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

section 11501 of this title prior to the general amendment of this

subtitle by Pub. L. 104-88, Sec. 102(a).

AMENDMENTS

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) generally. 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,

standard, 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 passengers subject to jurisdiction

under subchapter I of chapter 135 of this title on an interstate

route or relating to the implementation of any change in the rates

for such transportation or for any charter transportation 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 "operations, or to

intrastate bus transportation of any nature in the State of Hawaii"

for "operations" in concluding provisions.

EFFECTIVE DATE

Chapter 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 701 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 13902 of this title.

-End-

-CITE-

49 USC Sec. 14502 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART B - MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT

FORWARDERS

CHAPTER 145 - FEDERAL-STATE RELATIONS

-HEAD-

Sec. 14502. Tax discrimination against motor carrier transportation

property

-STATUTE-

(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 geographical area in a State used in

determining the assessed value of property for ad valorem

taxation.

(3) Motor carrier transportation property. - 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) Commercial and industrial property. - 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) Acts Burdening Interstate Commerce. - 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) Excessive valuation of property. - 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) 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 transportation property at a tax rate that

exceeds the tax rate applicable to commercial and industrial

property in the same assessment jurisdiction.

(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 jurisdiction 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 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) 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 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.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 103, Dec. 29, 1995, 109 Stat.

900.)

-MISC1-

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, Sec. 102(a).

-End-

-CITE-

49 USC Sec. 14503 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART B - MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT

FORWARDERS

CHAPTER 145 - FEDERAL-STATE RELATIONS

-HEAD-

Sec. 14503. Withholding State and local income tax by certain

carriers

-STATUTE-

(a) Single State Tax Withholding. -

(1) In general. - No part of the compensation paid by a motor

carrier providing transportation subject to jurisdiction under

subchapter 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 subsection, an employee

is deemed to have earned more than 50 percent of pay in a State

or subdivision of that State in which the time worked by the

employee in the State or subdivision 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 providing transportation

subject to jurisdiction under subchapter II of chapter 135 shall

file income tax information returns and other reports only with -

(A) the State and subdivision of residence of the employee

(as shown on the employment 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 carrier during the preceding calendar year.

(3) Applicability to sailors. - This subsection 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

noncontiguous trade or in the fisheries of the United States.

(c) Filing of Information. - A motor and motor private carrier

withholding pay from an employee under subsection (a) of this

section shall file income tax information returns and other reports

only with the State and subdivision of residence of the employee.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 103, Dec. 29, 1995, 109 Stat.

901.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

section 11504 of this title prior to the general amendment of this

subtitle by Pub. L. 104-88, Sec. 102(a).

-End-

-CITE-

49 USC Sec. 14504 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART B - MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT

FORWARDERS

CHAPTER 145 - FEDERAL-STATE RELATIONS

-HEAD-

Sec. 14504. Registration of motor carriers by a State

-STATUTE-

(a) Definitions. - In this section, the terms "standards" and

"amendments to standards" mean the specification of forms and

procedures required by regulations of the Secretary to prove the

lawfulness of transportation by motor carrier referred to in

section 13501.

(b) General Rule. - The requirement of a State that a motor

carrier, providing transportation subject to jurisdiction under

subchapter I of chapter 135 and providing transportation in that

State, must register with the State is not an unreasonable burden

on transportation referred to in section 13501 when the State

registration is completed under standards of the Secretary under

subsection (c). When a State registration requirement imposes

obligations in excess of the standards of the Secretary, the part

in excess is an unreasonable burden.

(c) Single State Registration System. -

(1) In general. - The Secretary shall maintain standards for

implementing a system under which -

(A) a motor carrier is required to register annually with

only one State by providing evidence of its Federal

registration under chapter 139;

(B) the State of registration shall fully comply with

standards prescribed under this section; and

(C) such single State registration shall be deemed to satisfy

the registration requirements of all other States.

(2) Specific requirements. -

(A) Evidence of federal registration; proof of insurance;

payment of fees. - Under the standards of the Secretary

implementing the single State registration system described in

paragraph (1) of this subsection, only a State acting in its

capacity as registration State under such single State system

may require a motor carrier registered by the Secretary under

this part -

(i) to file and maintain evidence of such Federal

registration;

(ii) to file satisfactory proof of required insurance or

qualification as a self-insurer;

(iii) to pay directly to such State fee amounts in

accordance with the fee system established under subparagraph

(B)(iv) of this paragraph, subject to allocation of fee

revenues among all States in which the carrier operates and

which participate in the single State registration system;

and

(iv) to file the name of a local agent for service of

process.

(B) Receipts; fee system. - The standards of the Secretary -

(i) shall require that the registration State issue a

receipt, in a form prescribed under the standards, reflecting

that the carrier has filed proof of insurance as provided

under subparagraph (A)(ii) of this paragraph and has paid fee

amounts in accordance with the fee system established under

clause (iv) of this subparagraph;

(ii) shall require that copies of the receipt issued under

clause (i) of this subparagraph be kept in each of the

carrier's commercial motor vehicles;

(iii) shall not require decals, stamps, cab cards, or any

other means of registering or identifying specific vehicles

operated by the carrier;

(iv) shall establish a fee system for the filing of proof

of insurance as provided under subparagraph (A)(ii) of this

paragraph that -

(I) is based on the number of commercial motor vehicles

the carrier operates in a State and on the number of States

in which the carrier operates;

(II) minimizes the costs of complying with the

registration system; and

(III) results in a fee for each participating State that

is equal to the fee, not to exceed $10 per vehicle, that

such State collected or charged as of November 15, 1991;

and

(v) shall not authorize the charging or collection of any

fee for filing and maintaining evidence of Federal

registration under subparagraph (A)(i) of this paragraph.

(C) Prohibited fees. - The charging or collection of any fee

under this section that is not in accordance with the fee

system established under subparagraph (B)(iv) of this paragraph

shall be deemed to be a burden on interstate commerce.

(D) Limitation on participation by states. - Only a State

which, as of January 1, 1991, charged or collected a fee for a

vehicle identification stamp or number under part 1023 of title

49, Code of Federal Regulations, shall be eligible to

participate as a registration State under this subsection or to

receive any fee revenue under this subsection.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 103, Dec. 29, 1995, 109 Stat.

902.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

section 11506 of this title prior to the general amendment of this

subtitle by Pub. L. 104-88, Sec. 102(a).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 13908 of this title.

-End-

-CITE-

49 USC Sec. 14505 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART B - MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT

FORWARDERS

CHAPTER 145 - FEDERAL-STATE RELATIONS

-HEAD-

Sec. 14505. State tax

-STATUTE-

A State or political subdivision thereof may not collect or levy

a tax, fee, head charge, or other charge on -

(1) a passenger traveling in interstate commerce by motor

carrier;

(2) the transportation of a passenger traveling in interstate

commerce by motor carrier;

(3) the sale of passenger transportation in interstate commerce

by motor carrier; or

(4) the gross receipts derived from such transportation.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 103, Dec. 29, 1995, 109 Stat.

904.)

-End-