Submit Testimony for HB 2702 by Wednesday, February 7 at 2:00 PM
Hearing is scheduled for Thursday, February 8, 2018 at 2:00 PM in conference room 308. See the hearing notice.
HB 2702 withholds taxes on income generated by Hawai‘i Real Estate Investment Trust (REIT) properties, keeping those dollars from escaping Hawai‘i and going elsewhere .
Please submit testimony by completing the form below. The form includes pre-filled testimony, but personalize and edit as you’d like. See the sidebar for more testimony ideas.
Your submitted testimony will look like this:
TO: House Committee on Human Services
HEARING: Thursday, February 8, 2018, 2:00 PM
PLACE: Conference Room 308
FROM: [Your Name]
RE: HB 2702 — Relating to Taxation
ATTENDING HEARING: [Yes or No]
Other talking points:
- Right now, income on Hawai‘i REIT property is escaping Hawai‘i tax and going elsewhere.
- Over 30 REITs operate in Hawai‘i, which collectively own $13 billion worth of real estate. In 2014, Hawai‘i REITs produced $721 million in dividend income that was exempt from corporate income tax. Without the dividends exemptions for REITs, Hawai‘i would have collected an additional $35m in revenue that year.
- The amount of Hawai‘i property that is invested in REITs has been rapidly increasing, and the amount of revenue lost to the REIT dividend exemption has likely gone up significantly since 2014.
- For years, the legislature has considered bills that would eliminate the REIT dividend exemption. However, REITs have argued that eliminating the deduction would be a double tax, since shareholders also pay income tax. This solution eliminates the double-tax concern voiced by REITs regarding eliminating the dividend exemption.