Massachusetts has cleared a path for banks to reorganize common trust funds as mutual funds, but the state's largest banks say they are in no rush to seize the opportunity.

Gov. Paul Celluci signed into law Tuesday a bill that eliminates, retroactive to Jan. 1, the state capital gains tax for investors whose common trust funds are converted into mutual funds. Massachusetts is one of a handful of states that continued to impose the tax on conversions after federal rules were revamped in August 1996 to defer the taxes until capital gains are realized.

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