You may not have known it, but the state Legislature has given out tax credits 17 times since 1978 under a provision of the state Constitution that requires refunds to taxpayers in times of a budget surplus.

The refunds in most of the years, including the most recent one in 2002, were a token $1, but reached a high of $125 in 1989.

Gov. Linda Lingle is calling for tax relief next session, given that the state has a $486 million surplus and is projected to have a $473 million surplus next year. If the economy remains strong and those estimates pan out, the Legislature would be expected under the Constitution to give refunds to taxpayers in 2007, but the administration and some lawmakers want relief sooner and much more than a dollar.

"We want to make it meaningful," said Georgina Kawamura, the state's budget director.

Tax refunds are required when the general fund balance is more than 5 percent of revenues for two consecutive years. Every state resident who files a tax return is eligible for the credits. Delegates to the 1978 constitutional convention added the provision to give people confidence in their ability to influence government spending and to prevent the state from building an overly large surplus.

But delegates gave the Legislature the right to choose the size of the refunds, and in all but four years the credits were $1, according to the state Department of Budget and Finance.

Lawmakers have approved separate tax relief in the past, most notably a substantial income tax break in 1998, but some believe the Legislature has shown a lack of interest in following the intent of the constitutional provision.

"When the store overcharges you, you should get a refund," said state Sen. Bob Hogue, R-24th (Kailua, Kane'ohe). "It seems pretty ridiculous to me that they end up giving a dollar back."

Tax relief was debated last session but ultimately was put off by lawmakers worried about the impact of public worker union contracts and long-term revenue growth. The governor and state Senate President Robert Bunda, D-22nd (N. Shore, Wahiawa), have said the state's economic forecast supports tax relief and pressure likely will mount on lawmakers next session because 2006 is an election year and tax cuts can have political advantages.

State House Speaker Calvin Say, D-20th (St. Louis Heights, Palolo, Wilhelmina Rise), has said he would be open to tax relief but, in the last session, also mentioned needs in education, criminal justice, affordable housing and economic development.

State Rep. Josh Green, D-6th (Kailua, Keauhou), said expanding access and efficiency in healthcare should also be a priority next session. "We have a lot of programs that went unfunded last year, and if the economy is booming, we should look to funding these programs and putting some of the money back into people's pockets," he said.

Lawmakers likely will discuss adjusting the income tax brackets upward so some people would have to make more money before they pay higher tax rates, and increasing the standard income tax deduction so some low-income people would pay no taxes and others would pay less.

Some lawmakers also want to expand on an existing federal earned-income tax credit for the working poor.

Reach Derrick DePledge at ddepledge@honoluluadvertiser.com.