WASHINGTON, DC— Legislation that would ostensibly make a number of small improvements to the existing REIT tax rules has been introduced in the U.S. House of Representatives. Representatives Jim McCrery (R-LA) and Ben Cardin (D-MD) were joined by 25 other members of the House Ways and Means Committee in introducing the REIT Improvement Act of 2003 (H.R. 1890) yesterday. Companion legislation is expected to be introduced in the U.S. Senate soon. According to Steven Wechsler, president/CEO of the National Association of Real Estate Investment Trusts (NAREIT): “The principal goals of the REIT Improvement Act (RIA) are to clarify and correct some issues surrounding the REIT Modernization Act of 1999, to eliminate a discriminatory barrier to foreign investment in publicly traded U.S. REITs and to provide the Internal Revenue Service with the ability to impose monetary penalties for reasonable-cause violations of REIT tests in lieu of the loss of REIT status.” “As was the case with past REIT-related legislation on Capitol Hill, the RIA has broad bi-partisan backing,” Wechsler added. “We appreciate the leadership of the measure’s original co-sponsors and we welcome the prospect of additional support in both the House and Senate.”
