The recent commentary by the Rt. Rev. Robert L. Fitzpatrick relied on inaccurate information (“Paying taxes a matter of justice and serving common good,” Star-Advertiser, Island Voices, April 18).

Fitzpatrick claimed that enacting Senate Bill 301 and eliminating the dividends paid deduction for real estate investment trusts (REITs) would generate $60 million in income tax revenue. But the state Department of Taxation says the bill would produce only $2.2 million the first year and under $10 million annually thereafter. Furthermore, legislative testimony showed the bill would jeopardize at least $16 million in general excise tax revenue.

He also claimed 99% of REIT shareholders of Hawaii properties live outside the state. In fact, 44% of Hawaii households own stock in REITs. This includes many Hawaii-based pension plans, including the state Employees’ Retirement System.

REITs are required to distribute 90% of profits to shareholders. REITs invest long-term in communities and do not flip properties.

Dara Bernstein

Senior vice president and tax counsel, National Association of Real Estate Investment Trusts

Washington, D.C.

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