Title: REIT Parity Act
Policy area: Taxation

Summary:
REIT Parity Act
This bill amends the Internal Revenue Code, with respect to the taxation of rent received by a real estate investment trust (REIT) from real property leased to a taxable REIT subsidiary, to apply the current rules for lodging facilities and health care property to parking facilities.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4531 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 4531

To amend the Internal Revenue Code of 1986 to treat rents received by a 
   real estate investment trust from a parking facility leased to a 
 taxable REIT subsidiary in the same manner as rents from lodging and 
          health care facilities leased to such a subsidiary.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 4, 2017

 Mr. Poe of Texas introduced the following bill; which was referred to 
                    the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to treat rents received by a 
   real estate investment trust from a parking facility leased to a 
 taxable REIT subsidiary in the same manner as rents from lodging and 
          health care facilities leased to such a subsidiary.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``REIT Parity Act''.

SEC. 2. APPLICATION OF THE LODGING AND HEALTH CARE REIT RULES TO 
              PARKING REITS.

    (a) Inclusion of Parking REITs to Exception for Certain Lodging 
Facilities and Health Care Property.--Section 856(d)(8)(B) of the 
Internal Revenue Code of 1986 is amended--
            (1) striking ``paragraph (9)(D)) or'' and inserting 
        ``paragraph (9)(D)), a qualified parking facility (as defined 
        in paragraph (9)(E)), or'';
            (2) by striking ``or qualified lodging facility'' and 
        inserting ``, qualified lodging facility, or qualified parking 
        facility''; and
            (3) by striking ``lodging facilities and'' and inserting 
        ``lodging facilities, parking facilities, and''.
    (b) Amendment to Definition of Eligible Independent Contractor.--
Section 856(d)(9) of such Code is amended--
            (1) by striking ``qualified lodging facility or'' each 
        place it appears and inserting ``qualified lodging facility, 
        qualified parking facility, or''; and
            (2) by striking ``qualified lodging facilities or'' in 
        subparagraph (A) and inserting ``qualified lodging facilities, 
        qualified parking facilities, or''.
    (c) Addition of Definition of Qualified Parking Facility.--Section 
856(d)(9) of such Code is amended by redesignating subparagraphs (E) 
and (F) as subparagraphs (F) and (G), respectively, and by inserting 
after subparagraph (D) the following new subparagraph:
                    ``(E) Qualified parking facility.--For purposes of 
                this paragraph--
                            ``(i) In general.--The term `qualified 
                        parking facility' means any real property 
                        (including interests therein), and any personal 
                        property incident to such real property, which 
                        is a parking facility.
                            ``(ii) Parking facility.--The term `parking 
                        facility' means any facility at which motor 
                        vehicles are parked for terms of less than 1 
                        calendar month in exchange for a fee (including 
                        customary amenities and facilities operated as 
                        part of, or associated with, any such facility 
                        so long as such amenities and facilities are 
                        customary for other properties of a comparable 
                        size and class owned by other owners unrelated 
                        to such real estate investment trust).''.
    (d) Amendment to Exceptions From Taxable REIT Subsidiaries.--
Section 856(l)(3) of such Code is amended--
            (1) in subparagraph (A), by striking ``a lodging facility 
        or'' and inserting ``a lodging facility, a parking facility 
        used predominantly to generate fees from the parking of motor 
        vehicles for terms of less than 1 calendar month, or'';
            (2) in subparagraph (B), by striking ``any lodging facility 
        or'' and inserting ``any lodging facility, parking facility 
        used predominantly to generate fees from the parking of motor 
        vehicles for terms of less than 1 calendar month, or''; and
            (3) in the second sentence--
                    (A) by striking ``a lodging facility or'' and 
                inserting ``a lodging facility, a parking facility, 
                or''; and
                    (B) by striking ``such lodging facility or'' in the 
                second sentence and inserting ``such lodging facility, 
                parking facility, or''.
    (e) Addition of Definition of Parking Facility.--Section 856(l)(4) 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph:
                    ``(C) Parking facility.--The term `parking 
                facility' has the meaning given to such term by 
                subsection (d)(9)(E)(ii).''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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