POSTED: 04:58 p.m. HST, Jun 14, 2011
Gov. Neil Abercrombie on Tuesday signed a bill into law that temporarily suspends general excise tax exemptions on nearly two dozen business activities, the largest source of new revenue to help balance the state budget.
Lifting the tax exemptions on contractors, businesses that sublease, airlines and others could generate about $200 million a year. The law is scheduled to sunset in June 2013.
Abercrombie also signed a bill into law that repeals a state income tax deduction on higher-income taxpayers, limits itemized deductions for higher-income taxpayers, and delays an increase in the standard deduction and personal exemption.
Lawmakers turned to the tax changes, along with spending cuts to state programs and labor savings from public-sector unions, to close a projected $1.3 billion deficit over two years.