According to the state Department of Taxation, Hawaii’s state tax revenues for the first three quarters of the fiscal year increased by an impressive 11 percent, compared with the same period last year. How validating for Maui real estate investors who are counting on economic growth for the future.
The report stated that Hawaii took in $3.9 billion through the end of March, and that was 10.6 percent more than the $3.5 billion in tax revenue collected in the same period of 2012. Specifically, general excise and use taxes increased by 9.7 percent to $2.19 billion from $1.99 billion. They also comprised the largest category of revenue.
Another interesting tidbit was that Hawaii’s hotel room tax, also known as the transient accommodations tax, increased by 13.4 percent to $270.9 million from $239.2 million in the same period last year. That should be very reassuring to those considering a second Maui home purchase for use as a vacation rental. If reports of an improving visitor industry weren’t enough in the past, hopefully the stability of tax revenue reports will be more convincing in their reliability.
The state Council on Revenues changed its forecast for the current fiscal year to 6.7 percent growth, which was more welcome news for the return of a robust economy. Maui real estate prices are also increasing as foreclosure and REO inventory continues to shrink, so those who purchased when prices were lower are certainly enjoying the knowledge that the value of their investments are on the rise.
We hope you’ve found this information interesting, and that you will check in on our future blogs, which come out every Friday. If you need assistance with your Maui real estate search, you’ll find our contact information at the bottom of the page. Mahalo!