Hawaii Senate Ways and Means Committee Passes Anti-REIT Bill

On Feb. 6, the Hawaii Senate Ways and Means Committee held a hearing on two REIT-related bills, SB 301, which would eliminate the REIT dividends paid deduction, and SB 675, which would have required that, among other things, that REITs file information returns providing specific shareholder information and pay withholding tax attributable to distributions to shareholders based on their pro rata share of a REIT’s income attributable to Hawaii.

The Committee passed SB 301, but it declined to pass SB 675. SB 301 now goes to the Senate floor.

The companion bill to SB 301 is HB 475. On Jan. 30, House Committee on Economic Development & Business held a hearing and later approved, HB 475. On Feb. 8, the House Economic Development & Business Committee published its committee report and the committee-approved version of HB 475, now called HB 475, HD 1. The House Committee on Consumer Protection & Commerce has scheduled a hearing for HB 475 HD 1 on Feb. 12. Even if approved by the Consumer Protection & Commerce Committee, HB 475 HD 1 still must be heard by the House Finance Committee.

Nareit will continue to vigorously oppose these bills.

(Contact: Dara Bernstein at dbernstein@nareit.com)

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