BATON ROUGE, La. (AP) — Lamar Advertising Co., the Baton Rouge-based billboard company, has received permission from the Internal Revenue Service to convert to a real estate investment trust.
The Advocate reports (http://bit.ly/1hoX1GI ) the conversion is expected to be effective as of Jan. 1, 2014.
Lamar has already completed the internal corporate restructuring necessary to comply with the real estate investment trust rules. Real Estate Investment Trusts don't have to pay corporate income taxes on profits as long as the trusts give at least 90 percent of profits to shareholders.
Lamar has been waiting on the IRS ruling since November 2012. The process typically takes three to six months.
Lamar shareholders must approve the conversion.
Information from: The Advocate, http://theadvocate.com