With just three months left in the state's fiscal year, tax revenues appear to be improving but are still down for the year, according to the latest un-audited numbers from the Department of Taxation.

As of the end of March, the state had about $3.3 billion in the general fund. That number is 2.3 percent above tax revenues last year at this time.

But the increase also reflects the decision to withhold income tax refunds until the beginning of the next fiscal year on July 1. So far the state is holding $123.4 million in refunds to individual taxpayers.

If the refunds were calculated into the March numbers, state tax revenue would be down 1.6 percent.

University of Hawaii economics professor Jack Suyderhoud said the tax revenue numbers are an indication that the state's economy is starting to recover.

“;We have bottomed out, and we're starting to come back up again,”; said Suy- derhoud, who is also vice chairman of the Council on Revenues, the economics board that comes up with estimates of how much money the state will collect in taxes.

Last month the council predicted a 2.5 percent decline in state tax collections.

“;We're still negative because the first half of the year was more negative than this,”; Suyderhoud said. “;But negative 1.6 is better than negative 2.5.”;

General excise tax revenues are down 4.4 percent, which “;still suggests that there's weakness in the economy,”; Suyderhoud said.

But hotel room tax collections are up 5.5 percent, which indicates that the tourism industry is starting to rebound, he said.