State says tax revenue up 5.6 percent for April

By Bruce Dunford
Associated Press

State tax revenue rebounded last month after a nose dive in March that shook Hawai'i lawmakers putting the final touches on the state's supplemental budget.

Revenue in April totaling $320.2 million was up 5.6 percent over April of last year, compared with March's 9.2 percent decline from 2001, the Department of Taxation reported Wednesday.

That bought the cumulative total of $2.61 billion collected through 10 months of the fiscal year to 1.2 percent below the same period last year.

While that's lower than the 0.7 percent drop projected by the state's Council on Revenues in March, it's a big improvement over the 2.1 percent decline showing in the cumulative total last month that prompted a warning by budget director Neal Miyahira that the state faced an additional $40 million revenue decline.

Leading April's revenue surge was a 7.5 percent jump in general excise and use taxes, which represent about half the total take and generally reflect business activity.

Tax director Marie Okamura, however, said part of that increase results from having 22 working days in April 2002 compared with 20 in April 2001.

A key indicator in the state's tourism market — hotel room tax revenue — was down 6.6 percent in April and is down 10.2 percent through the 10 months of the fiscal year that ends June 30.