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The Honolulu Advertiser
Posted on: Tuesday, July 19, 2005

Surging economy yielded just less than $4B in FY '05

Associated Press

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The state government took in just less than $4 billion in taxes in the fiscal year ended June 30, a 16 percent increase over the previous fiscal year, the state Department of Taxation announced yesterday.

In all, $373.26 million was added to the general fund in June, pushing the fiscal year total to $3.99 billion, up from $3.44 billion the year before.

As late as May 30, the state Council on Revenues had raised its tax revenue growth forecast for the fiscal year to 14.6 percent, up from its March forecast of 10 percent. The council sets the revenue forecast on which the governor and Legislature base the state budget.

Gov. Linda Lingle had responded to the council's latest forecast by saying Island residents should be allowed to benefit from the state's vibrant economy by receiving tax relief. Lingle was in Washington, D.C., yesterday and did not immediately comment on the revenue report.

The state collected $184.55 million in general excise and use taxes, the greatest single category of collections, in June, upping the 12-month take to $2.13 billion, a 12.4 percent increase over the $1.9 billion collected the previous fiscal year, fiscal 2004.

Corporate income tax collections increased by 51.1 percent during the just completed fiscal year to $85.6 million, while individual income tax collections rose by 18.2 percent to $1.38 billion.

The hotel room tax grew by 9.3 percent during the fiscal year to $198.77 million.