The state's tax take in August was down 16.9 percent, but state Director of Taxation Marie Okamura said most of the $47.9 million decline resulted from the month ending on the Labor Day weekend. ‘Weekend effect’
drops tax haulState revenues slipped
16.9 percent in AugustBy Bruce Dunford
Associated PressThat gave businesses until Sept. 3, the first working day, to pay their taxes for August, meaning that revenue will be counted in the September total to be reported in early October.
Through the first two months of the fiscal year, total revenues were down 3.3 percent, again much of it due to the so-called "weekend effect."
The state Council on Revenues Friday forecast a 6.1 percent growth in tax revenues for the current fiscal year compared to the fiscal year that ended June 30 and included the sharp economic slump after the terrorist attacks a year ago today.
Council Chairman Michael Sklarz said the council's optimistic revenue forecast was based on signs of a recovered local economy, including real estate sales, construction and a rebound in the tourist industry.
The state's income from the general excise and uses taxes in August dropped by 20.1 percent, or $31.7 million, from August 2001, but was running 3.1 percent, or $9.4 million, ahead through two months into the new fiscal year.
General excise and use taxes reflect business activity in the state and account for about half of the state's total general fund income.
Personal income tax revenues, which represent about one-third of the total, were down in August by 10.6 percent -- or $9.3 million. Tax officials said that resulted from a $7.7 million jump in individual income tax refunds.
In July and August, the state collected a total $519.8 million in general fund tax revenues, compared to $537.7 million in the same two-month period last year.
State of Hawaii
