By George F. Lee, Star-Bulletin
As today's tax deadline loomed, Reid and Traci Kimokeo took
one last look at their returns last night with Sue Heath, Kalihi
office administrator of Pendleton Tax & Business Services.
Post offices will stay open late this evening and offer
curb-side service to help those filing late
Hawaii has largest
state tax burden
A typical isle taxpayer paid 14.2%
By Pete Pichaske
in local taxes, compared with an
11.4% national average
Star-BulletinWASHINGTON -- As Hawaii residents wear out their calculators completing their tax returns and legislators debate how to restructure the state's tax system, a Washington group today singled out Hawaii as having the biggest state tax burden.
The Tax Foundation, a Washington-based, corporate-funded research group, released its annual calculation of "Tax Freedom Day," which measures how many days the typical taxpayer has to work to pay federal, state and local taxes.
This year's national Tax Freedom Day (after which all taxes will be paid off) will be May 10, the latest on record. Foundation economists blamed the growing tax burden on federal tax increases in the early 1990s and economic growth, which increases the average tax burden because progressive income taxes make the wealthier pay more.
For Hawaii taxpayers, Tax Freedom Day will be May 9 -- a day earlier than the national average, but a day later than last year and 11 days later than in 1970, when the group began its calculations.
The typical Hawaii taxpayer lost 14.2 percent of income to state and local taxes, the highest proportion in the nation.
The national average was 11.4 percent.
Hawaii's overall tax burden was lowered somewhat by the percent of income that the typical isle taxpayer lost to federal taxes -- 21.1 percent -- compared with the national average of 24 percent.
Hawaii residents pay a below-average percentage of their income on federal taxes due to slightly below-average incomes and, a foundation economist theorized, a high proportion of retired residents, whose income is taxed less.
Last-minute filers flood
tax consultantsWalk-ins trying to meet tonight's deadline
By Susan Kreifels
may find preparers booked
Star-BulletinIt may be a "sign of the times" that he sees fewer and fewer taxpayers worried about filing their returns by April 15, Daniel Verdugo says.
"Maybe it's just a tax rebellion or an attitude toward the government," Verdugo said yesterday as he helped clients at Pendleton Tax & Business Services meet today's federal filing deadline. "People give up and say, 'The heck with it, I'll do it next year.'"
Verdugo bases that belief on 21 years of tax-preparation experience. But Pendleton's Kalihi office was still fully booked with appointments yesterday.
One taxpayer asked him to prepare returns for the past four years.
"It will be done, but not much before midnight," Verdugo said.
Marie Okamura, head of the state Department of Taxation's Tax Services and Processing Division, said state returns appear to be coming in a little slower this year.
Although the state deadline is April 20, most returns usually are mailed at the same time as federal ones.
"We'll literally have a couple of tons of mail coming within the next week," Okamura said.
About 55 percent of state returns, or 290,000, have arrived. By Monday, the state had issued fewer refunds than at the same time last year -- 218,000 compared to 250,000.
The average refund was also less -- $420 compared to $487 a year ago. Refunds so far total $91.6 million.
But the department has received about 19 percent more returns coming in with payments compared with last year.
Okamura said that, because of accounting procedures, she didn't have a breakdown of total payments so far.
Tax filers yesterday said they had waited 'til last the minute because they owed the government. Medie Raguindin, a teacher for 36 years, said she normally files in the last days.
"I know I'm going to pay," Raguindin said.
Realtor Donna Johnson said she also was filing last-minute because she owed taxes.
"It's a dreaded time of the year for everybody. How do you make house payments after you pay the taxes?" she asked.
Donn Yonemitsu, manager for Pendleton's Kalihi and Waipahu branches, said some people take their chances by walking in during the last few days, hoping to get help.
But most tax consultants are fully booked. Pendleton hires about 30 extra people between January and May to help the normal staff of 10 at its six locations.
As for Yonemitsu, he mailed his returns last year at 9 p.m. on April 15 and probably will do the same again this year.
"I know I have to pay. I know I'll get it done."
Postal workers ease tax delivery
The U.S. Postal Service will help last-minute federal income tax filers tonight by offering special ways to mail returns and avoid jams.
The main post office at the airport and the downtown station will offer curbside collection of tax mail.
Customers at the airport should follow signs directing them past the main entrance to the Ewa-side gate.
Postal employees will collect tax mail directly from drivers from 4:30 p.m. to midnight. Downtown tax mail will be collected curbside.
Check scheduled pickup times on collection boxes before depositing mail and use correct postage. Tax mail deposited by midnight in the outside collection box at the following locations will receive an April 15 postmark:
Honolulu -- airport, downtown, Hawaii Kai, Kapalama, Makiki, Waikiki and Waialae-Kahala.
State tax drop-offs
