Transient tax revenue on track to cover plan
News good for those who feared take would come in under budgetWAILUKU - Seemingly running counter to recent bad economic news, Maui County's first half year take of transient accommodations tax revenue was $11.1 million, or a little more than half of the county's budgeted annual amount of $21.9 million, Finance Director Kalbert Young reported Monday.
That's reassuring to county bean counters, who earlier warned that the hotel room tax revenue could be as much as 10 percent lower than the amount estimated in the county budget as a result of the national economic downturn and statewide decline in tourism.
"If we can produce the same for the last six months (of the fiscal year), we can at least meet revenue expectations in 2009 for TAT," Young said.
The state government collects the tax on hotel room revenue and distributes a portion of the money to the counties.
Maui County is taking a close look at its financial picture as it faces slumping revenues and rising costs. Mayor Charmaine Tavares has asked all departments to look for ways to cut 16 percent of their spending for the current fiscal year, and she has warned nonprofits to reduce grant requests by 10 percent next year.
Young said he is anticipating a 10 percent decline in revenues from real property taxes, the county's largest source of income, for the next fiscal year.
The mayor's budget proposal to the Maui County Council is due in mid March.
The council then works on a spending plan through May. The county's fiscal 2009-10 budget goes into effect July 1.
