HI SB118

Department of Business, Economic Development, and Tourism (DBEDT), with assistance from the Department of Taxation, must conduct a comprehensive study on real estate investment trusts (REITs) operating in Hawaii.

Study must examine the total number of REITs in Hawaii, number of Hawaii-based REITs, Hawaii taxpayer investors in REITs, economic impacts on real estate development, and captive REIT structures.

Study must analyze the equity and efficiency of Hawaii's dividends paid income tax deduction for REITs, including projected tax revenue impact if the deduction is repealed.

DBEDT must submit findings, recommendations, and any proposed legislation to the legislature no later than twenty days before the 2016 regular session convenes.

Appropriates $100,000 in general revenues for fiscal year 2015-2016 to fund the study, effective July 1, 2015.