HI HB2702

Requires real estate investment trusts (REITs) to file annual returns with the Hawaii Department of Taxation reporting shareholders' names, addresses, social security numbers, share ownership, and pro rata shares of income attributable to Hawaii.

Permits REITs to file composite returns and make composite tax payments on behalf of nonresident shareholders in lieu of individual shareholder filings.

Mandates REITs to obtain written agreements from nonresident shareholders consenting to file returns and pay taxes on their pro rata share of Hawaii-source income; if agreements are not obtained, the REIT must withhold and pay tax at the highest marginal rate on the shareholder's behalf.

Allows REITs to recover withheld payments from shareholders on whose behalf the payments were made, and treats composite payments as payments by the individual shareholder against their income tax liability.

Applies to taxable years beginning after December 31, 2018, with an effective date of July 1, 2030; violations by REIT officers constitute a misdemeanor.