Tax News

CCH (cch.taxgroup.com) reports:

Although New York corporate franchise tax provisions were added earlier this year to require a controlled real estate investment trust (REIT) or regulated investment company (RIC) to file a combined report with its controlling corporation (TAXDAY, 2007/04/04, S.29), exceptions have now been enacted for REITs owning subsidiary REITs, as well as RICs owning subsidiary RICs.
In addition, a REIT or RIC is not required to be included in a combined report under Tax Law Article 9-A if more than 50% of its capital stock is owned by a bank holding company, as defined in Tax Law Sec. 1462(f)(1), or a banking corporation subject to the Article 32 bank franchise tax under Tax Law Sec. 1451.
Finally, with respect to recently enacted requirements under which certain corporations taxable under the corporate franchise tax will become taxable under the bank franchise tax, a new provision specifies that any acquisition that was completed on or before January 3, 2007, will be treated as an acquisition made before January 1, 2007.
Ch. 93 (S.B. 6335) and Ch. 94 (S.B. 6336), Laws 2007, effective June 29, 2007.