POSTED: 7:49 a.m. HST, Apr 21, 2011
LAST UPDATED: 7:51 a.m. HST, Apr 21, 2011
State tax collections are down by 5.5 percent through the first nine months of the fiscal year, the state Department of Taxation reported.
Revenue would have increased 0.3 percent if not for the impact of former Gov. Linda Lingle's decision to delay income tax refunds last year.
Still, collections appear to be falling short of the latest projection by the state Council on Revenues. The council has predicted that revenue will decline 1.6 percent for the fiscal year that ends in June.
Gov. Neil Abercrombie and state lawmakers are closely following the monthly revenue figures as they try to close a projected two-year budget deficit of $1.3 billion.
Through March, general excise and use taxes -- the largest source of state revenue -- have increased by 5.7 percent over last fiscal year. Hotel-room taxes are up 24 percent over last year. But individual income tax collections are down 25.9 percent, most due to the delay in refunds. Corporate taxes are off by 151.8 percent.