Do REITs pay taxes?
Yes, REITs pay hundreds of millions in taxes to the State of Hawaii and counties, including general excise and property taxes.
How do REITs contribute to the economy in Hawaii?
REITs not only pay their fair share in taxes, they deliver many other benefits, including jobs, more retail and entertainment options, as well as charitable contributions. To take just one example of tax revenue generated by REITs, the recent REIT-funded expansion of Ala Moana Center alone brought in more than $146 million in state GET revenue in 2016. Since completion, the additional retail sales produced some $33 million in GET revenue for the state, along with 3,000 new jobs.
How many Hawaii taxpayers invest in REITs with property in Hawaii?
Many Hawaii residents are REIT investors, either because they purchased shares in REITs directly or they own mutual funds that invest in REITs, or their retirement plans invest in REITs. Based on data reported by the Internal Revenue Service, the State of Hawaii receives approximately $8.7 million a year from island residents in the form of the taxes they pay on REIT investment dividends.
How do REITs contribute to the business community in Hawaii?
A large portion of commercial properties in the state are REIT owned, and they provide high-quality office and retail space to many locally owned businesses, including dentists, doctors, restaurants, etc.
How are REITs helping to solve Hawaii’s affordable housing crisis?
REITs are providing affordable housing for Hawaii’s working families, such as the rental units at Moanalua Hillside, Waena Apartments and Kapolei Lofts.
Are any REITs headquartered here in Hawaii?
Yes, the Shidler Group's Pacific Office Properties and Alexander & Baldwin are both examples of local REITs.