Tax form change would clarify amount of REIT deductions

“Do the math.” That’s what we say when we want an answer that’s precise and true.

Nareit Hawaii and Faith Action for Community Equity have been “doing the math” for the last three years regarding how much revenue Hawaiʻi would get from real estate investment trusts (REITs) if the tax loophole were closed and they paid Hawaiʻi’s income tax as other non-REIT Hawaiʻi businesses do.

Nareit and Faith Action still cannot agree on an answer.

Both believe their answers to be true. Why are they calculating extremely disparate answers? They may not be using “models of real phenomena.” In other words, they do not have consistent information on which to base their calculations.

This is where House Bill 286, House Draft 1, comes in to help.

As Hawaiʻi faces major budget shortfalls this year and several years to come, it is imperative that all corporations provide accurate reporting of its assets and revenues generated.