Rebounds in tourism contribute to a surge in April collections
POSTED: 01:30 a.m. HST, May 12, 2011
State tax collections have rebounded but are still off by 2.3 percent through the first 10 months of the fiscal year, according to the state Department of Taxation.
Revenue collections surged in April as the state's tourism industry continued to improve. In the March report, tax collections were down 5.5 percent over last fiscal year.
"The April 2011 revenue numbers are promising and are, in part, a result of better business accounting procedures instituted by the Tax Department," Gov. Neil Abercrombie said in a statement.
The state Council on Revenues has projected that collections would decline 1.6 percent through the fiscal year that ends in June. The council is expected to update the forecast later this month.
State lawmakers and the governor used the council's forecasts as a guide when drafting the two-year state budget. The governor and lawmakers have talked about a possible special session if the council significantly downgrades the forecast this month.
But the April revenue figures show improvement.
General excise and use taxes — the largest source of state revenue — are up 6.5 percent over last fiscal year. Hotel room taxes are up 24.6 percent.
Individual income tax collections are down by a net 19.8 percent, a reflection of former Gov. Linda Lingle's decision to delay income tax refunds last year and shift the burden to this year.
Corporate income taxes are down 62.8 percent. But the corporate figure can be influenced by a few large settlements.re down 62.8 percent. But the corporate figure can be influenced by a few large settlements.