State revenues are up, which bode well for the economy’s future. Since the start of this fiscal year on July 1, 2012, the state has taken in $1.3 Billion in General Excise Tax revenues, which is 10 % more than last year at the same time.
GET is collected on almost anything sold in the State, including services, and is an important source of revenue.
For Hawaii Island residents, an uptick in state revenues means there is less likelihood the State Legislature will try to lessen Hawaii Island’s share of the Transient Accommodation Tax, sometimes called the Hotel Room Tax. Currently Hawaii Island gets around $18 million per year from the fund. If Hawaii County did not get that money, the only recourse for the County would be to raise property taxes or other fees to cover any shortfall. Part of the purpose of the TAT is to compensate the counties for the burden placed on county infrastructure and services by tourists. That would include the use of roads, emergency medical services, parks, and more.
