In 2014-2017, 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 connection with the Hawaii legislature’s 2019 session, the following REIT-related bills have been 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.