In 2014-2018, the Hawaii legislature considered legislation that would repeal the dividends paid deduction (DPD). In 2018, the Hawaii legislature again considered legislation to repeal the DPD as well as to require REITs to withhold Hawaii taxes when dividends are distributed to shareholders.

In 2019, the legislature once again considered similar legislation, and both the House and Senate passed SB 301. On June 24, 2019, Hawaii Governor David Ige announced his intention to veto SB 301. On July 9, 2019, Governor Ige vetoed SB 301.

In connection with the Hawaii legislature’s 2019 session, the following REIT-related bills were introduced:

These bills would eliminate the REIT DPD and/or impose a shareholder withholding tax and information reporting requirement with respect to dividends paid by REITs.