HI HB1064

Adds a new section to Hawaii tax law requiring real estate investment trusts (REITs) to file annual returns reporting shareholders' gross income, deductions, shareholder information, income attributable to Hawaii, distributions, and other prescribed information.

Requires REITs to furnish each shareholder with information about their pro rata share of income attributable to Hawaii and income not attributable to Hawaii, calculated using rules similar to those for other entities.

Permits REITs to file composite returns and make composite tax payments on behalf of nonresident shareholders, and optionally for resident shareholders.

Mandates REITs to obtain written agreements from nonresident shareholders agreeing to file tax returns and pay taxes; if a REIT fails to obtain these agreements, the REIT must withhold and pay taxes on behalf of non-compliant shareholders at the highest marginal tax rate multiplied by the shareholder's pro rata share of Hawaii-source income.

Establishes that willful failure by REIT officers to provide information, file returns or agreements, or make required payments is a misdemeanor; applies to taxable years beginning after December 31, 2019.