H.B. 1064 Summary

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

• Permits REITs to file composite returns and make composite tax payments on behalf of nonresident shareholders, and may permit such composite filings for resident shareholders.

• Mandates that REITs obtain written agreements from all nonresident shareholders agreeing to file tax returns, pay taxes timely, and submit to Hawaii's personal jurisdiction for tax collection; if agreements are not timely filed, the REIT must withhold and pay taxes at the highest marginal tax rate on the shareholder's pro rata share of Hawaii-attributable income.

• Treats composite payments made by REITs as tax payments by the respective shareholders and makes willful failure by REIT officers to provide information, file returns, or make payments a misdemeanor.

• Applies to taxable years beginning after December 31, 2019.