Thursday, July 12, 2001

State of Hawaii

State tax revenues
climb 6.2% in fiscal year

The $185.2 million increase
indicates a steady growth
rate for the economy

By Rick Daysog

Statewide tax collections increased 6.2 percent during the 2001 fiscal year, despite a substantial decline during the month of June.

The state Department of Taxation said it collected $3.16 billion in taxes during the fiscal year ended June 30, 2001, a $185.2 million jump from the $2.97 billion raised during the previous 12-month period.

The figures -- which provide one of the broadest measures of economic activity in the isles -- indicate Hawaii's economy continues to grow at a steady rate.

"This reflects some underlying strength in the economy," said Mike Sklarz, chairman of the Council of Revenues.

The seven-member council provides quarterly tax-revenue forecasts which state legislators use to set the state budget.

"These numbers have continued to be strong during the past several years."

During the recently completed 2001 fiscal year, general excise tax collections increased 6.8 percent to $1.64 billion while personal income tax collections rose 3.9 percent to $1.1 billion during the same period.

Meanwhile, corporate income tax collections fell 10.9 percent from an unusually high $68.2 million during fiscal year 2000 to $60.8 million last year.

On a monthly basis the figures show a different picture. The June 2001 collections were down 15.5 percent to $228.5 million from the previous June's $270.3 million.

Monthly corporate income tax collections tumbled 44.4 percent in June 2001 to $9.8 million while monthly general excise tax collection slid 14.1 percent to $110.6 million during the same period.

According to the Department of Taxation, the monthly figures for June were impacted by the so-called weekend effect.

Since the last day of June fell on a Sunday, taxes normally due on that day weren't due until the first working day of July. Those collections will be reflected in the upcoming July figures.

State of Hawaii

E-mail to City Desk

Text Site Directory:
[News] [Business] [Features] [Sports] [Editorial] [Do It Electric!]
[Classified Ads] [Search] [Subscribe] [Info] [Letter to Editor]

© 2001 Honolulu Star-Bulletin