Page:United States Statutes at Large Volume 113 Part 3.djvu/425

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PUBLIC LAW 106-170—DEC. 17, 1999 113 STAT. 1943 "(D) QUALIFIED LODGING FACILITY.—For purposes of this paragraph— "(i) IN GENERAL.—The term 'quaUfied lodging facihty' means any lodging facility unless wagering activities are conducted at or in connection with such facility by any person who is engaged in the business of accepting wagers and who is legally authorized to engage in such business at or in connection with such facility. "(ii) LODGING FACILITY.—The term 'lodging facihty' means a hotel, motel, or other establishment more than one-half of the dwelling units in which are used on a transient basis. "(iii) CUSTOMARY AMENITIES AND FACILITIES.— The term 'lodging facility' includes customary amenities and facilities operated as part of, or associated with, the lodging facility so long as such amenities and facilities are customary for other properties of a comparable size and class owned by other owners unrelated to such real estate investment trust. "(E) OPERATE INCLUDES MANAGE.—References in this paragraph to operating a property shall be treated as including a reference to managing the property. "(F) RELATED PERSON. —Persons shall be treated as related to each other if such persons are treated as a single employer under subsection (a) or (b) of section 52.". (2) CONFORMING AMENDMENT.—Subparagraph (B) of section 856(d)(2) of such Code is amended by inserting "except as provided in paragraph (8)," after "(B)". (3) DETERMINING RENTS FROM REAL PROPERTY. — Applicability. (A)(i) Paragraph (1) of section 856(d) of such Code Effective date, is amended by striking "adjusted bases" each place it occurs and inserting "fair market values". (ii) The amendment made by this subparagraph shall 26 USC 856 note. apply to taxable years beginning after December 31, 2000. (B)(i) Clause (i) of section 856(d)(2)(B) of such Code is amended by striking "number" and inserting "value". (ii) The amendment made by this subparagraph shall 26 USC 856 note. apply to amounts received or accrued in taxable years beginning after December 31, 2000, except for amounts paid pursuant to leases in effect on July 12, 1999, or pursuant to a binding contract in effect on such date and at all times thereafter. SEC. 543. TAXABLE REIT SUBSIDIARY. (a) IN GENERAL.—Section 856 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: "(1) TAXABLE REIT SUBSIDIARY.— For purposes of this part— "(1) IN GENERAL.— The term 'taxable REIT subsidiary' means, with respect to a real estate investment trust, a corporation (other than a real estate investment trust) if— "(A) such trust directly or indirectly owns stock in such corporation, and "(B) such trust and such corporation jointly elect that such corporation shall be treated as a taxable REIT sub- •^ sidiary of such trust for purposes of this part.