Sahil Muliyil, senior manager, state and local real estate tax at RSM US LLP, sat down for a video interview at Nareit’s REITwise: 2026 Educational Conference in Hollywood, Florida, March 24-26.
State and local taxes (SALT) may not always grab headlines, but Muliyil emphasized that they can materially shape REIT investment outcomes, often in ways that are overlooked until it’s too late.
“Structuring plays a huge part in mapping out [more than] the tax leakage…in development, operating, and disposition phases,” he said, underscoring the need for a full lifecycle view of tax exposure.
A key challenge is that many investors assume REITs are largely shielded from taxes due to their federal structure. However, Muliyil noted that state and local jurisdictions frequently impose alternative taxes—such as gross receipts, franchise, or net worth taxes—that can significantly impact returns. “There are a lot of other things to think about,” he said, particularly in jurisdictions like Texas, Tennessee, and Oregon that have unique tax regimes.
Muliyil also warned that tax considerations are too often addressed during due diligence or disposition, rather than upfront. This reactive approach can lead to unexpected liabilities, including transfer taxes or sales and use taxes, that could have been mitigated with earlier planning.
Ultimately, he stressed that incorporating SALT analysis into initial investment decisions is essential.
“Going into that with all of the information that you need is going to be vital,” Muliyil said, because tax structure can ultimately influence not just returns, but where capital is deployed.