Standard-Pacific Corp. said it filed a registration statement with the Securities and Exchange Commission on Monday in its bid to reorganize as a limited partnership--just two days after a congressional panel decided not to eliminate the tax benefits of such a change in its bill.
Under existing tax law, the Costa Mesa home builder's proposed move would help the company reap savings by avoiding double taxation on profits and dividends it currently must pay as a corporation. As a limited partnership, only shareholders' dividends would be taxed.
The timing of the move--which comes the first business day after House and Senate conferees passed their tax reform package--is "coincidental," said Robert J. St. Lawrence, Standard-Pacific's chief financial officer.
"It wasn't planned that way. It just turned out that way," St. Lawrence said. "We certainly feel a lot more comfortable now, though," because of the weekend actions in Congress.