DAR File No. 31943

Tax Commission, Auditing

R865-6F-39

Definitions Related to Captive Real Estate Investment Trust and Foreign Real Estate Investment Trust Pursuant to Utah Code Ann. Section 59-7-101

NOTICE OF PROPOSED RULE

DAR File No.: 31943
Filed: 09/15/2008, 10:59
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

H.B. 359 (2008) defines the terms "captive real estate investment trust" and "foreign real estate investment trust" and provides rulemaking authority for other related terms. (DAR NOTE: H.B. 359 (2008) is found at Chapter 389, Laws of Utah 2008, and was effective 05/05/2008.)

Summary of the rule or change:

The proposed rule defines terms related to captive real estate investment trusts and foreign real estate investment trusts.

State statutory or constitutional authorization for this rule:

Section 59-7-101

Anticipated cost or savings to:

the state budget:

None--Any revenue impact was taken into account in H.B. 359 (2008).

local governments:

None--Any revenue impact was taken into account in H.B. 359 (2008).

small businesses and persons other than businesses:

None--Any revenue impact was taken into account in H.B. 359 (2008).

Compliance costs for affected persons:

None--H.B. 359 (2008) addresses the income taxation of a real estate investment trust or income from a real estate investment trust.

Comments by the department head on the fiscal impact the rule may have on businesses:

None--Fiscal impacts were considered with H.B. 359 (2008). D'Arcy Dixon, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Tax Commission
Auditing
210 N 1950 W
SALT LAKE CITY UT 84134

Direct questions regarding this rule to:

Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at clee@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

10/31/2008

This rule may become effective on:

11/07/2008

Authorized by:

D'Arcy Dixon, Commissioner

R865. Tax Commission, Auditing.

R865-6F. Franchise Tax.

R865-6F-39. Definitions Related to Captive Real Estate Investment Trust and Foreign Real Estate Investment Trust Pursuant to Utah Code Ann. Section 59-7-101.

The following definitions apply to the definitions of captive real estate investment trust and foreign real estate investment trust in Section 59-7-101.

(1) "Cash or cash equivalents" means currency and coins, bank balances, negotiable money orders, checks, and highly liquid investments that can easily be converted into cash, such as treasury bills, certificates of deposit, marketable securities, and negotiable financial instruments.

(2) "Established securities market" is defined as that phrase is defined in Treas. Reg. Section 1.884-5 (d)(2) (2007), which is adopted and incorporated by reference.

(3) "Listed Australian property trust" means:

(a) an Australian unit trust registered as a managed investment scheme under the Australian Corporations Act in which the principal class of units is listed on a recognized stock exchange in Australia and is regularly traded on an established securities market; and

(b) an entity organized as a trust, provided that an entity listed in Subsection (3)(a) owns or controls, directly or indirectly, 75 percent or more of the voting power or value of the beneficial interests or shares of that trust.

(4) "Regularly traded" is defined as that phrase is defined in Treas. Reg. Section 1.884-5 (d)(4) (2007), which is adopted and incorporated by reference.

 

KEY: taxation, franchises, historic preservation, trucking industries

Date of Enactment or Last Substantive Amendment: [March 14], 2008

Notice of Continuation: March 8, 2007

Authorizing, and Implemented or Interpreted Law: 59-7-101