State tax revenues fell
15.4 percent last month

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Star-Bulletin staff

State tax revenues last month fell more than 15 percent compared to May 2001, the state reported yesterday.

Revenues in May totaling $242.4 million were down $44 million, or 15.4 percent, compared with May of last year, the state Department of Taxation said.

For the 11 months of the state's fiscal year, collections are down 2.6 percent, to $2.85 billion. The state's Council on Revenues in March predicted the state's coffers would shrink 0.7 percent.

Leading May's revenue drop was a 5.9 percent decline in general excise and use taxes, which represent about half the total take and generally reflect business activity, the department said.

Lower individual income tax revenues resulted from an $18.6 million drop in payments with return and a $7.2 million reduction in estimated taxes likely caused by declining non-wage income, Tax Director Marie Okamura said.

The state's hotel room tax dropped 10.8 percent, to $14.7 million from $16.5 million in May 2001. For the fiscal year, hotel tax revenues declined 10.3 percent to $149.5 million.