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Reported Effects of the Captive REIT & RIC Legislative Amendments Report Advisory

The Reported Effects of the Captive REIT & RIC Legislative Amendments report, prepared by the Department’s Office of Tax Policy Analysis, was mandated by Part FF-1 of Chapter 57 of the Laws of 2008. It provides data on the reported effects of amendments made to the Tax Law in 2007 and 2008 regarding the tax treatment of real estate investment trusts (REITs) and regulated investment companies (RICs).

There are a number of issues that readers should take into consideration regarding the data presented in this report. The taxpayers that reported information are in effect a self-selected sample that does not necessarily represent all taxpayers that were affected by this legislation, and the tax impact reported by these taxpayers does not necessarily represent the total tax impact of the legislation. There was also a great deal of variation in the nature of the data submitted by taxpayers, and there were several taxpayers that reported clearly anomalous results that required additional analysis and manipulation before they could be put into a usable form for the report. Despite this, the data used for the report generally represents the effects of the legislation as estimated by the reporting taxpayers, without significant alteration by the Tax Department. In addition, because of an inability to reconcile certain data for some taxpayers, the difference in total tax liability between the tax law years will not equal the reported tax impact in the report tables. Readers should take great care in drawing any conclusions about the effectiveness of the 2007 and 2008 legislation based on the data presented in this report.

Please feel free to contact the Office of Tax Policy Analysis at (518) 457-3187 with any questions or comments.