Wednesday, July 14, 2010

Hawaii's Tax Revenue Slips In Recent Fiscal Year

Despite hopes that this would be a year of recovery, the state of Hawaii saw a drop in tax revenue this past fiscal year. Some officials believe this may be an inaccurate calculation, because some tax returns were withheld until the new fiscal year, so not all data has been collected.

According to the Associated Press individual income tax collections rose 14.5 percent in the fiscal year that ended June 30, compared with the same period a year earlier. Similarly, corporate income levy receipts increased 10.2 percent.

Moreover, the state's hotel tax collections rose 6.4 percent in fiscal year 2010.

At the same time, however, general excise tax receipts fell 4.4 percent, an indicator that consumer spending is still lagging.

Collectively, the state's general fund revenue dropped 0.5 percent for the fiscal year, the tax department reported.

The agency cautioned, though, that some tax refunds that normally would have been paid by June 30 were held back until the start of the new fiscal year, a moneysaving move instituted by Gov. Linda Lingle.

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