Marketplace Fairness Act Introduced in the Senate
On Nov. 9, a bipartisan group of ten Senators, led by Senator Mike Enzi (R-WY), along with Senators Lamar Alexander (R-TN) and Dick Durbin (D-IL), introduced the Marketplace Fairness Act, S. 1832. The Marketplace Fairness Act would allow both "member states" under the Streamlined Sales and Use Tax Agreement (SSUTA) and states that had adopted a minimum set of simplification requirements to collect sales and use taxes on retail sales through the seller whether they occur at storefronts. The bill contains a "small seller" exemption for those sellers with less than $500,000 in remote sales annually.
The Marketplace Fairness Act is supported by a wide coalition, including NAREIT, the National Governors Association, the National Conference of State Legislatures, the National Retail Federation, the International Council of Shopping Centers, the Retail Industry Leaders Association, and, notably, online retailer Amazon also supports this legislation.
NAREIT Comments on SEC Concept Release on the Investment Company Act of 1940's Exemption for Real Estate Investors
On Monday, Nov. 7, NAREIT filed a submission in response to an SEC Concept Release in which the Commission requested comment on interpretive issues regarding the exclusion found in Section 3(c)(5)(C) of the Investment Company Act of 1940 (1940 Act) for issuers primarily engaged in “purchasing or otherwise acquiring mortgages and other liens on and interests in real estate.” NAREIT’s submission highlights the important role residential and commercial mortgage REITs can play in addressing many of the policy challenges facing U.S. real estate markets, while also presenting a comprehensive analysis of the investor protections inherent in the regulatory framework currently governing these companies. NAREIT also joined twelve other real estate trade associations in a joint comment letter on this issue.
FIRPTA Reform Measures Introduced in Congress
On Sept. 22, Sen. Robert Menendez (D-NJ) and Sen. Michael Enzi (R-WY) introduced S. 1616, the Real Estate Jobs and Investment Act, in the United States Senate to make two significant reforms in the Foreign Investment in Real Property Tax Act (FIRPTA) to encourage greater non-U.S. direct investment in U.S. commercial real estate. Companion bipartisan legislation, H.R. 2989, was introduced the day before, on Sept. 21, in the U.S. House of Representatives by Rep. Kevin Brady (R-TX) and Rep. Joseph Crowley (D-NY). Both measures would (1) increase the amount of stock minority shareholders can hold in publicly-traded companies, like REITs, from 5 to 10 percent; and, (2) reverse a 2007 IRS Notice allowing redemptions and liquidating distributions to be treated the same as sales of stock instead of real estate.
NAREIT Comments on Risk Retention Proposed Rule
On Monday, Aug. 1, NAREIT filed a comment letter with Federal banking regulators and the SEC on the Proposed Rule for reduced credit risk retention associated with CMBS securities. Inexplicably, the proposal would bar any loan to a REIT from being eligible to qualify for zero credit risk retention. NAREIT's letter, which follows meetings conducted at the FDIC, Federal Reserve and SEC, urges the Agencies to amend their final rule to treat a loan to a REIT the same as a loan to any other commercial real estate borrower.
Please see these Policy & Politics updates and more in the December 2011 PL Report 
REITs in the Community
 Oct. 24, 2011: Senator Roger Wicker (R-MS), third from left, visited Parkway Properties, Inc.’s The Pinnacle at Jackson Place in Jackson, MS. Senator Wicker met with Parkway Properties, Inc. executives, including Charles Cannada (incoming Chairman of Parkway, as of 1/1/12, left), Steve Rogers, Parkway President & CEO (second from left) and David Hoster, CEO & President, EastGroup Properties, Inc (right). Senator Wicker was briefed on the economic impact REITs have on Jackson and Mississippi. In addition, they were informed about several REIT-related issues being pursued in the 112th Congress, including reform of the Foreign Investment in Real Property Tax Act and the future of the Terrorism Risk Insurance Act (TRIA). Visit our REITs in the Community page for additional photos and information.
Latest Updates in Financial Standards
On Jan. 6, NAREIT modified the FFO definition to also exclude impairment write-downs of investments in In Substance Real Estate investees under certain circumstances. Read NAREIT's Jan. 6, 2012 SFO Alert for more. 
On Jan. 5, REESA submitted a letter to the IASB in response to the IASB's Investment Entities Exposure Draft.
On Dec. 13, REESA submitted a letter to the IASB in response to the IASB's request for input on its Agenda Consultation.
On Dec. 9, NAREIT issued a letter in response to the PCAOB's solicitation for public comment on its Concept Release on Auditor Independence and Audit Firm Rotation and Notice of Roundtable.
On Dec. 8, the FASB aligned and extended the comment letter deadline for Investment Companies, Investment Property Entities and Consolidation Proposals. Read NAREIT's Dec. 9, 2011, FirstBrief for more.
On Dec. 1, NAREIT submitted a letter to the FASB requesting the alignment and extension of the comment letter deadlines for the Investment Property Entities, Investment Companies and Consolidation Proposed Accounting Standards Updates.
On Nov. 30, the FASB ratified the EITF Consensus for Derecognition of in Substance Real Estate. Read NAREIT's Dec. 2, 2011, SFO Alert for more.
On Nov. 14, the Financial Accounting Standards Board and the International Accounting Standards Board issued their revised exposure draft, Revenue from Contracts with Customers, as discussed in NAREIT's Nov. 22, 2011, SFO Alert.
On Nov. 4, NAREIT issued further guidance on reporting FFO. Read NAREIT's Nov. 4, 2011, SFO Alert for more.
On Nov. 3, the FASB issued proposed amendments to consolidation guidance. Read NAREIT's Nov. 11, 2011, SFO Report for more.
On Nov. 1, NAREIT submitted a letter to the FASB requesting the issuance of an exposure draft on amendments to discontinued operations guidance.
On Oct. 31, NAREIT reaffirmed its definition of NAREIT FFO, which excludes impairment write-downs of depreciable real estate. Read NAREIT's Oct. 31, 2011, SFO Alert for more.
On Oct. 20, the FASB and IASB tentatively decided to expand the scope exception from the proposed Leases standard to all investment property, whether measured at fair value or cost. Read NAREIT's Oct. 20, 2011, FirstBrief for more.
On Aug. 24, the FASB tentatively decided to eliminate straight-line rent accounting for investment properties reported at fair value, as discussed in NAREIT's Aug. 30, 2011, SFO Alert.
On Aug. 10, the FASB simplified goodwill impairment testing and the PCAOB explored mandatory audit firm rotation, as discussed in NAREIT's Aug. 18, 2011, SFO Alert.
The lastest updates in Financial Standards are discussed further in NAREIT's Aug. 11, 2011, SFO Report.
Current IRS Issues
On May 26, NAREIT submitted comments to the IRS regarding the 2010-2011 Guidance Priority List.
On Feb. 3, 2011, NAREIT submitted a letter to the IRS asking for additional REIT Tax Guidance regarding the working out and acquistion of distressed debt securities.
State Tax Issues
Read the August 2011 SALT Report, NAREIT's State and Local Tax Policy Update.
On July 25, NAREIT submitted comments on MTC Proposed Statute Regarding Pass-Through Entity Income That is Ultimately Realized By an Entity That Is Not Subject to Income Tax.
Read the May 2011 SALT Report, NAREIT's State and Local Tax Policy Update.
On May 12, NAREIT submitted comments to the Multistate Tax Commission (MTC) regarding a draft model statute that potentially could impose income tax on REIT-owned operating partnerships and/or subsidiary REITs held by widely-held REITs or operating partnerships.
REITPAC News and Information
Check out the latest facts and figures for REITPAC.
The full August 2011 Capitol Report, NAREIT's Political Outreach Update. | 