SB 3067 Summary

• Requires real estate investment trusts (REITs) to file annual returns reporting shareholders' pro rata shares of income attributable and not attributable to Hawaii, along with shareholder names, addresses, and identifying numbers.

• Mandates REITs withhold 5% of each shareholder's pro rata share of Hawaii-source income and remit the withheld amount to the state as a minimum tax liability.

• Allows tax-exempt shareholders to claim refunds for amounts withheld on REIT income and exempts non-required filers from filing Hawaii returns if only REIT income is reported.

• Permits the department of taxation to authorize composite returns and payments on behalf of resident shareholders.

• Applies to taxable years beginning after December 31, 2018, with an effective date of July 1, 2050.