Honolulu's rail tax falls more than $8M short of goal - Hawaii News Now - KGMB and KHNL

Honolulu's rail tax falls more than $8M short of goal

HONOLULU (AP) - Honolulu's planned rail line drew significantly fewer state tax dollars than expected this past quarter.

The project received $52.3 million in rail taxes during the quarter that ended June 30. That's more than $8 million short of the amount that had been projected.

The Honolulu Star-Advertiser reports that the shortfall nearly wipes out promising gains made in the previous two quarters and leaves rail officials confounded at what to expect in the future.

State Department of Taxation officials say a lag in processing tax returns has contributed to the swings.

The rail project faces a budget shortfall of as much as $910 million. Transportation officials cite struggling revenues and rising construction costs for the shortfall.

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Powered by Frankly