2021 Plan of Finance Amortization slide image

2021 Plan of Finance Amortization

STATE O OF 1959 HAWAI State Revenues The State's Tax Structure Provides Stable Delivery of Tax Revenue ■ The General Excise Tax (GET) and Individual Income Tax comprise over 89% of the State's annual General Fund tax revenues The GET is a broad tax based on the gross income that businesses generate in the State ■■ GET is levied at a low rate and has been a stable source of revenue to the State for several decades Unlike most other state sales taxes, Hawaii's GET applies to revenue generated on services in addition to its broad application to revenue from the sale of goods Transient Accommodations Tax (TAT) accounted for only about 2% of General Fund Revenues in FY 2021 and is expected to grow in FY 2022 State General Fund Tax Revenue Composition (FY 2021)(1) Public Service Companies Liquor and. Permits 0.6% Insurance Premiums 2.3% Inheritance and Estate 0.4% 1.7% 1.0% Tobacco and Licenses TAT 2.1% Miscellaneous 0.2% Conveyance 0.4% General Excise and Use 42.2% 20-Year History of General Fund Tax Revenues Millions Income Individuals 46.4% Income Corporations 2.6% $8,000 $7,000 $6,000 All General Fund Revenues GET Collections Individual Income Tax Collections (net) $5,000 $4,000 $3,000 $2,000 $1,000 $0 (2) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Fiscal Year 2017 2018 2019 2020 2021 10 (1) (2) Sources: Hawaii Department of Business, Economic Development & Tourism. Hawaii Department of Taxation. The Tax Foundation. Unaudited. The State's cash basis statements are not directly comparable with the State's audited financial statements, which are accrual basis. The State had two collections for personal income tax in FY 2021.
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