Hawaii SB2362 imposes a tax on real estate investment trusts' taxable income and disallows the dividends paid deduction.

Hawaii SB2362 amends state tax law to impose a tax on the taxable income of real estate investment trusts, computed under federal law with certain adjustments. The bill disallows the dividends paid deduction for these trusts, meaning they cannot deduct dividends paid to shareholders from their taxable income. The tax rates vary based on income levels, ranging from 4.4% to 6.4%. The bill also mandates that real estate investment trusts notify the state of their operations, properly designate themselves on tax returns, and submit federal tax returns with state returns.

Hawaii SB2362 imposes a tax on real estate investment trusts' taxable income and disallows the dividends paid deduction.

Hawaii SB2362 amends state tax law to impose a tax on the taxable income of real estate investment trusts, computed under federal law with certain adjustments. The bill disallows the dividends paid deduction for these trusts, meaning they cannot deduct dividends paid to shareholders from their taxable income. The tax rates vary based on income levels, ranging from 4.4% to 6.4%. The bill also mandates that real estate investment trusts notify the state of their operations, properly designate themselves on tax returns, and submit federal tax returns with state returns.