Hawaii ranks first
among states in
taxes per capita

CORRECTION Saturday, May 7, 2005 » In an April 28 story on Page A3 about Hawaii having the highest per-capita state tax collection in the nation, it was reported erroneously that Hawaii is the only state to fund public education. Hawaii leads the nation in the percentage of education funding from the state -- about 90 percent. In other states, education is supported by varying percentages of local, state and federal funding. The Honolulu Star-Bulletin strives to make its news report fair and accurate. If you have a question or comment about news coverage, call Editor Frank Bridgewater at 529-4791 or email him at corrections@starbulletin.com.

Hawaii has the highest per-capita state tax collection in the nation, according to figures released yesterday by the U.S. Census Bureau.

Tax collections by state governments grew more than 8 percent to $593 billion in the last fiscal year, the Census Bureau said.

The data from the 2004 Annual Survey of State Government Tax Collections found that per-capita taxes collected by states averaged $2,024 nationally.

Hawaii recorded $3,048 in per-capita taxes collected, followed by Wyoming, $2,968; Connecticut, $2,937; Minnesota, $2,889; and Delaware, $2,862.

The state with the lowest per-capita tax collections was Texas, which collected less than half Hawaii's amount, $1,357 per capita.

One reason Hawaii's per-capita tax take is high is because it is the only state that funds public education. In other states, schools are funded by local property taxes.

"It's kind of like looking at apples and oranges," said Linn Garcia, a tax specialist with the state Department of Taxation.

State Tax Director Kurt Kawafuchi said yesterday that he believes Hawaii has a high tax rate.

"That's why we're trying to give something back to the struggling families though the tax cut, increasing the standard deduction," he said, referring to administration proposals for tax relief.

Census Bureau tax survey

www.census.gov/govs/www/statetax.html

State Department of Taxation

www.hawaii.gov/tax