POSTED: 4:47 p.m. HST, May 11, 2011
LAST UPDATED: 9:27 p.m. HST, May 11, 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 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 —ß are up 6.5 percent over last fiscal year. Hotel-room taxes are up 24.6 percent.
Individual income taxes are down 19.8 percent, a reflection of former Gov. Linda Lingle’s decision to delay income tax refunds last year.
Corporate income taxes are down 62.8 percent. But the corporate number can be influenced by a few large settlements.