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The Star-Advertiser’s call for Gov. David Ige to spare Senate Bill 301 the veto pen and raise taxes on real estate investment trusts (REITs) ignores the facts (“Veto ‘Airbnb bill,’ but not REITS one,” Star-Advertiser, Our View, June 26).
The paper’s editorial argues REITs should pay state corporate income taxes like other businesses. But REITs don’t keep their profits like other businesses.
These profits are distributed to shareholders who pay the tax. The editorial neglects to mention that thousands of these shareholders are Hawaii residents who own REIT shares through their employer retirement plans and investments in mutual funds.
If the Star-Advertiser’s valuation of REIT Hawaii investments at $18 billion is correct, we should all be grateful for this significant infusion of capital into our economy and the improvements it brings. REITs already pay millions of dollars in county and state taxes on these investments. It’s Hawaii taxpayers, not REITs, who are subsidized and pay less for infrastructure because of the considerable amount of tax payments by REITs.
Francis Cofran
Senior general manager, Ala Moana Center
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