Report: Tax collections in Hawaii increased by about 5%
HONOLULU (AP) — Tax collections in Hawaii were up by about 5% last year, a report said.
The state Department of Taxation sent the annual report in December to Democratic Gov. David Ige and the state Legislature, Hawaii Tribune-Herald reports.
The report showed that $8.2 billion was collected in fiscal year 2019, which ended June 30, compared to $7.9 billion collected the year prior.
Revenue from the general excise tax and income tax accounted for most of the increase, department officials said.
“General excise tax is Hawaii’s largest source of revenue, accounting for 43% of the state’s total tax collections,” taxation director Rona M. Suzuki said in a statement to Ige. “Revenue from the general excise tax rose to $3.54 billion in fiscal year 2019 from $3.40 billion in fiscal year 2018, an increase of 4.1%.”
Hawaii County received $10.2 million from its general excise tax of 0.25%, but is expected to increase after the tax went up to the maximum 0.5% at the start of the new year, the report said.
The second largest tax is the income tax which generated a 17% increase in revenue this year with more than $2.5 billion collected, Suzuki said.
The report also showed more than $1.7 billion was collected in other taxes including about $600 million in hotel room taxes, $206 million in fuel taxes and $132 million in state motor vehicle weight taxes and registration fees.