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The Honolulu Advertiser
Posted on: Wednesday, December 14, 2005

State tax revenues showing strength

Advertiser Staff

The state's general fund tax revenues are up 13.7 percent in the first five months of the fiscal year, another solid measure of the state's economic strength.

The state Council on Revenues is expected to release its latest estimates on Friday.

The strong revenue growth will likely mean the council will upgrade its forecast from September.

The Lingle administration, using the council's estimates, had been predicting a budget surplus of $535 million at the end of the fiscal year and $632 million by the end of the 2007 fiscal year. But the revenue growth could mean the projected surplus will be even higher.

The debate over how to use the surplus will likely be a major part of the legislative session that begins in January.

The state Department of Taxation reported yesterday that general excise and use tax revenues are up 13 percent so far this fiscal year.

Hotel room taxes are up 7.1 percent, and individual income tax collections are up 7.5 percent.