Delayed Tax Refunds Coming

Hawaii Gov. Linda Lingle Monday announced that state income tax refunds processed during the months of January and February will now be issued. The 2009 refunds were delayed within the legally allowed 90-day refund period until early July 2010 to help mitigate the state’s projected $721 million revenue shortfall for fiscal 2010. 

The total estimated refunds for taxpayers who filed during the period is $125 million, accounting for 60% of the $207 million claims to date. An estimated 43% of 331,000 tax filers will receive refunds. The first refunds will go to the earliest tax-return filers.

The Lingle administration opted for the refund delay to avoid the need for more massive cuts to education and health and human services, as well as to prevent tax increases next year.

According to the state’s council of revenues, for the first 10 months of fiscal 2010 actual tax collections were down 1%.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER