On Tuesday the Hawaii House voted, 44 to 7, in favor of Senate Bill 301, which would impose the state’s 6.2 percent corporate tax on REITs. The bill passed the Senate in early April with a near-unanimous vote.
Hawaii would become the first state in 50 years to impose corporate income taxes on REITs. New Hampshire taxed REITs under a law passed in 1970.
Approximately $18 billion of property in Hawaii is owned by REITs. Assets include Ala Moana Center, Hilton Hawaiian Village and the International Market Place in Waikiki, none of which pay Hawaii corporate income tax.
REIT operators said that passing the tax would stifle investment in Hawaii and potenti
