REIT Parity Act

Bill: 115-hr-4531
Sponsor: full_name: Rep. Poe, Ted [R-TX-2]
Introduced: 2017-12-04
Policy area: Taxation
Subjects: Business investment and capital

Income tax rates

Real estate business

Securities
Latest action: action_date: 2017-12-04
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2017-12-04
action_desc: Introduced in House
text: <p><b>REIT Parity Act </b></p> <p>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. </p>

tv_txt: I 115th CONGRESS 1st Session H. R. 4531 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.

1. Short title This Act may be cited as the REIT Parity Act . 2. Application of the lodging and health care REIT rules to parking REIT s (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.