1 New Paragraph; Business Profits Tax; Deduction for Dividends. Amend RSA 77-A:4 by inserting after paragraph XVIII the following new paragraph:

XIX. In the case of a business organization that is a real estate investment trust as defined in section 856 of the United States Internal Revenue Code a deduction of such amount of gross business profits as is attributable to dividends paid out to its investors which are taxable as dividends under RSA 77:4, V.

2 Real Estate Transfer Tax; Real Estate Investment Trusts. Amend RSA 78-B:1-a, V and VI to read as follows:

V. "Sale, granting and transfer'' means every contractual transfer of real estate, or any interest in real estate from a person or entity to another person or entity, whether or not either person or entity is controlled directly or indirectly by the other person or entity in the transfer. Transfers of interests in real estate holding companies, except for a real estate investment trust as defined in section 856 of the United States Internal Revenue Code, holding real estate or holding interests in real estate, transfer of which would be taxable under this chapter if transferred directly, shall be taxable as transfers under this chapter to the extent of the fair market value of the real estate. No transfer of shares of ownership interests in a real estate investment trust as defined in section 856 of the United States Internal Revenue Code shall be taxable as transfers under this chapter. Transfers of interests in an entity that holds, either directly or indirectly, an interest in a real estate holding company shall be considered to be a transfer of an interest in the real estate holding company to the extent of the ownership interest of the entity in the real estate holding company.

VI. "Real estate holding company'' means an organization which is engaged principally in owning, holding, selling, or leasing real estate and which owns real estate or an interest in real estate within the state, but which is not a real estate investment trust as defined in section 856 of the United States Internal Revenue Code.

3 New Paragraphs; Real Estate Transfer Tax; Exceptions Added. Amend RSA 78-B:2 by inserting after paragraph XXII the following new paragraphs:

XXIII. To a transfer of shares of ownership interests in a real estate investment trust as defined in section 856 of the United States Internal Revenue Code relative to a transfer of a specific real property after payment of the tax for the acquisition of such real property.

XXIV. To a change in a limited partner of a federal low-income housing tax credit limited partnership for the transfer of affordable housing having an award of federal low-income housing credits.

4 Conveyances of Real Estate; Trusts. Amend RSA 477:25 to read as follows:

477:25 Statute of Uses Not to Effect Trusts. When a conveyance or devise of real estate is made to a grantee or devisee in trust or as trustee under a declaration of trust, except to a real estate investment trust as defined in section 856 of the United States Internal Revenue Code, such conveyance or devise shall vest in the grantee or devisee, as trustee, legal title with full power to convey the real estate in accordance with the trust.

5 Conveyances of Real Property; Trusts. Amend RSA 477:25-a, IV to read as follows:

IV. This section shall not apply to any trust that, as determined by the laws of its situs, is an entity capable of holding and conveying title in its own name. This section shall not apply to a real estate investment trust as defined in section 856 of the United States Internal Revenue Code.

6 Effective Date. This act shall take effect July 1, 2018.

1 New Paragraph; Business Profits Tax; Deduction for Dividends. Amend RSA 77-A:4 by inserting after paragraph XVIII the following new paragraph:

XIX. In the case of a business organization that is a real estate investment trust as defined in section 856 of the United States Internal Revenue Code a deduction of such amount of gross business profits as is attributable to dividends paid out to its investors which are taxable as dividends under RSA 77:4, V.

2 Real Estate Transfer Tax; Real Estate Investment Trusts. Amend RSA 78-B:1-a, V and VI to read as follows:

V. "Sale, granting and transfer'' means every contractual transfer of real estate, or any interest in real estate from a person or entity to another person or entity, whether or not either person or entity is controlled directly or indirectly by the other person or entity in the transfer. Transfers of interests in real estate holding companies, except for a real estate investment trust as defined in section 856 of the United States Internal Revenue Code, holding real estate or holding interests in real estate, transfer of which would be taxable under this chapter if transferred directly, shall be taxable as transfers under this chapter to the extent of the fair market value of the real estate. No transfer of shares of ownership interests in a real estate investment trust as defined in section 856 of the United States Internal Revenue Code shall be taxable as transfers under this chapter. Transfers of interests in an entity that holds, either directly or indirectly, an interest in a real estate holding company shall be considered to be a transfer of an interest in the real estate holding company to the extent of the ownership interest of the entity in the real estate holding company.

VI. "Real estate holding company'' means an organization which is engaged principally in owning, holding, selling, or leasing real estate and which owns real estate or an interest in real estate within the state, but which is not a real estate investment trust as defined in section 856 of the United States Internal Revenue Code.

3 New Paragraphs; Real Estate Transfer Tax; Exceptions Added. Amend RSA 78-B:2 by inserting after paragraph XXII the following new paragraphs:

XXIII. To a transfer of shares of ownership interests in a real estate investment trust as defined in section 856 of the United States Internal Revenue Code relative to a transfer of a specific real property after payment of the tax for the acquisition of such real property.

XXIV. To a change in a limited partner of a federal low-income housing tax credit limited partnership for the transfer of affordable housing having an award of federal low-income housing credits.

4 Conveyances of Real Estate; Trusts. Amend RSA 477:25 to read as follows:

477:25 Statute of Uses Not to Effect Trusts. When a conveyance or devise of real estate is made to a grantee or devisee in trust or as trustee under a declaration of trust, except to a real estate investment trust as defined in section 856 of the United States Internal Revenue Code, such conveyance or devise shall vest in the grantee or devisee, as trustee, legal title with full power to convey the real estate in accordance with the trust.

5 Conveyances of Real Property; Trusts. Amend RSA 477:25-a, IV to read as follows:

IV. This section shall not apply to any trust that, as determined by the laws of its situs, is an entity capable of holding and conveying title in its own name. This section shall not apply to a real estate investment trust as defined in section 856 of the United States Internal Revenue Code.

6 Effective Date. This act shall take effect July 1, 2018.