More Signs of Recovery: Tax Collections Up 6%

File photo.

By Sonia Isotov

Half way into the current 2012 fiscal year, statewide general fund tax collections are up by 16.0% compared with the 2011 fiscal year, according to preliminary figures released by the Hawaii State Tax Department yesterday.

That is $2.3 billion dollars that the department has collected for the first six months of the state’s fiscal year which begins in July. This is a 16% increase of the previous first half of 2011 fiscal year when it was $2 billion. If the $187.4 million accrued refunds that were released in July 2010 are factored out, general fund deposits would increase by 6.0%.

Although the Council on Revenues this week revised their growth forecast for the state to 11.5%, down 3% from their September forecast, this increase in tax collection figures adds to the promise of overall economic recovery gaining momentum in the state.

General excise and use taxes, the largest single category of tax collections, were $205.4 million in December for the state. For the first half of the 2012 fiscal year, general excise and use taxes have increased by 7.8% over the previous year.

Transient accommodations tax (TAT) collections were $22.1 million for the month of December 2011. Compared to the 2011 fiscal year, TAT collections are up by 15.7%.  The convention center enterprise fund reached the cap of $33.0 million for calendar year 2011.