is hereby imposed on the rental of a dwelling unit a tax equal to 1 percent of the amount of the rent paid for such dwelling unit. (b) Covered landlord For purposes of this section, the term covered landlord means any person that owns— (1) more than 1,000 dwelling units held for rent within a single metropolitan statistical area, (2) more than 2,000 dwelling units held for rent, or (3) at least 500 dwelling units held for rent in at least 3 different States. (c) Exceptions (1) In general Subsection (a) shall not apply to any dwelling unit subject to a rent control, just cause, or source of income discrimination law. (2) Rent control law For purposes of this subsection— (A) In general The term rent control law means any State or local law which restricts the amount by which a lessor may increase rental payments for a dwelling unit and allows an affirmative defense to eviction or private right of enforcement. (B) Minimum amount level of rent control A law shall not be treated as a rent control law with respect to any dwelling unit for purposes of this paragraph unless the lessor of such dwelling unit may not, when the lease with respect to such unit expires, increase monthly rent by an amount greater than the percentage increase, if any, over the preceding 12 months in the Consumer Price Index for All Urban Consumers or 3 percent of the average monthly amount paid for the same unit for each month that the unit was occupied during the previous 12-month period, whichever is greater. (3) Just cause law The term just cause law means any State or local law which at least restricts a lessor from evicting lessee by limiting evictions to instances in which— (A) the tenant has— (i) failed to pay rent for 2 or more consecutive months despite clear and timely notice, (ii) caused substantial destruction to the rental property, (iii) caused significant danger to other tenants, or (iv) significantly and repeatedly violated an explicit lease term and failed to cure the violation after being given notice requesting that the lease