S.Amdt. 2868
What it does: Adds SEC. __. TAX TREATMENT OF STATE OWNERSHIP OF RAILROAD REAL ESTATE INVESTMENT TRUST wherever appropriate
Sen. Elizabeth Dole (R-NC)What it changes
1 change to S. 1637
Adds SEC. __. TAX TREATMENT OF STATE OWNERSHIP OF RAILROAD REAL ESTATE INVESTMENT TRUST wherever appropriate
Adds a sectionInserted: SEC. __. TAX TREATMENT OF STATE OWNERSHIP OF RAILROAD REAL ESTATE INVESTMENT TRUST.
Inserted: (a) In General.--If a State owns all of the outstanding stock of a corporation which is a real estate investment trust, which is a non-operating class III railroad, and substantially all of the activities of which consist of the ownership, leasing, and operation by such corporation of facilities, equipment, and other property used by the corporation or other persons in railroad transportation, then, for purposes of section 115 of the Internal Revenue Code of 1986--
Inserted: (1) income derived from such activities by the corporation shall be treated as accruing to the State, and
Inserted: (2) such activities shall be treated as the exercise of an essential governmental function of the State to the extent such activities are of a type which are an essential government function (within the meaning of section 115 of such Code).
Inserted: (b) Gain or Loss Not Recognized on Conversion.--Notwithstanding section 337(d) of the Internal Revenue Code of 1986--
Inserted: (1) no gain or loss shall be recognized under section 336 or 337 of such Code, and
Inserted: (2) no change in basis of the property of such corporation shall occur, because of any change of status of the corporation to a tax-exempt entity by reason of the application of subsection (a).
Inserted: (c) Tax-Exempt Financing.--Any obligation issued by an entity described in subsection (a) shall be treated as an obligation of the State for purposes of applying section 103 and part IV of subchapter B of chapter 1 of the Internal Revenue Code of 1986.
Inserted: (d) Definitions.--For purposes of this section--
Inserted: (1) Real estate investment trust.--The term "real estate investment trust" has the meaning given such term by section 856(a) of the Internal Revenue Code of 1986.
Inserted: (2) Non-operating class iii railroad.--The term "non-operating class III railroad" has the meaning given such term by part A of subtitle IV of title 49, United States Code (49 U.S.C. 10101 et seq.) and the regulations thereunder.
Inserted: (3) State.--The term "State" includes--
Show 7 more inserted paragraphsShow less
Inserted: (A) the District of Columbia and any possession of the United States, and
Inserted: (B) any authority, agency, or public corporation of a State.
Inserted: (e) Applicability.--
Inserted: (1) In general.--Except as provided in paragraph (2), this section shall apply on and after the date on which a State becomes the owner of all of the outstanding stock of a corporation described in subsection (a).
Inserted: (2) Exception.--This section shall not apply to any State which--
Inserted: (A) becomes the owner of all of the voting stock of a corporation described in subsection (a) after December 31, 2003, or
Inserted: (B) becomes the owner of all of the outstanding stock of a corporation described in subsection (a) after December 31, 2005.
The amendment doesn't say where this goes; the clerk decides.
Original wording
At the appropriate place, insert the following:
Read automatically from the Congressional Record. Check the original before relying on it.
As printed
SA 2868. Mrs. DOLE submitted an amendment intended to be proposed by her to the bill S. 1637, to amend the Internal Revenue Code of 1986 to comply with the World Trade Organization rulings on the FSC/ETI benefit in a manner that preserves jobs and production activities in the United States, to reform and simplify the international taxation rules of the United States, and for other purposes; which was ordered to lie on the table as follows:
At the appropriate place, insert the following:
SEC. __. TAX TREATMENT OF STATE OWNERSHIP OF RAILROAD REAL ESTATE INVESTMENT TRUST.
(a) In General.--If a State owns all of the outstanding stock of a corporation which is a real estate investment trust, which is a non-operating class III railroad, and substantially all of the activities of which consist of the ownership, leasing, and operation by such corporation of facilities, equipment, and other property used by the corporation or other persons in railroad transportation, then, for purposes of section 115 of the Internal Revenue Code of 1986--
(1) income derived from such activities by the corporation shall be treated as accruing to the State, and
(2) such activities shall be treated as the exercise of an essential governmental function of the State to the extent such activities are of a type which are an essential government function (within the meaning of section 115 of such Code).
(b) Gain or Loss Not Recognized on Conversion.--Notwithstanding section 337(d) of the Internal Revenue Code of 1986--
(1) no gain or loss shall be recognized under section 336 or 337 of such Code, and
(2) no change in basis of the property of such corporation shall occur, because of any change of status of the corporation to a tax-exempt entity by reason of the application of subsection (a).
(c) Tax-Exempt Financing.--Any obligation issued by an entity described in subsection (a) shall be treated as an obligation of the State for purposes of applying section 103 and part IV of subchapter B of chapter 1 of the Internal Revenue Code of 1986.
(d) Definitions.--For purposes of this section--
(1) Real estate investment trust.--The term “real estate investment trust” has the meaning given such term by section 856(a) of the Internal Revenue Code of 1986.
(2) Non-operating class iii railroad.--The term “non-operating class III railroad” has the meaning given such term by part A of subtitle IV of title 49, United States Code (49 U.S.C. 10101 et seq.) and the regulations thereunder.
(3) State.--The term “State” includes--
(A) the District of Columbia and any possession of the United States, and
(B) any authority, agency, or public corporation of a State.
(e) Applicability.--
(1) In general.--Except as provided in paragraph (2), this section shall apply on and after the date on which a State becomes the owner of all of the outstanding stock of a corporation described in subsection (a).
(2) Exception.--This section shall not apply to any State which--
(A) becomes the owner of all of the voting stock of a corporation described in subsection (a) after December 31, 2003, or
(B) becomes the owner of all of the outstanding stock of a corporation described in subsection (a) after December 31, 2005.
Legislative Activity
Stay on top of the latest movement without scrolling through every action
Senate amendment submitted
March 22, 2004