James Mak
Should the Counties Get a Share of the Transient Accommodation Tax?
By James Mak In the recently-concluded thirty-first legislature (2021), Hawaii state lawmakers passed HB 862 CD1 which would divert to the state government’s general fund (GF) $103 million from the state’s transient accommodation tax collections (TAT) that otherwise would have gone to the counties. In exchange, state lawmakers gave each of the four counties the […]
Read MoreTaxing Income in the New World of Teleworking
By Robert D. Ebel and James Mak Covid-19 has accelerated the growth of teleworking/telecommuting in the U.S. As a result, states are having to confront the challenge of determining how best to tax the incomes of employees who live in one state but work remotely for employers located in another state. In Hawaii a resident […]
Read MoreHow Bad? Labor Underutilization in Hawaii During the Pandemic
By James Mak The U.S. Bureau of Labor Statistics (BLS) recently issued revised estimates of civilian labor force and unemployment in Hawaii for all of 2020. The new numbers show that in December 2020 Hawaii had the unenviable distinction of having the highest state unemployment rate in the nation (10.3%). For the entire year, Hawaii’s […]
Read MoreThe Hawaii Film Tax Credit: An Update
By Sumner La Croix and James Mak In 1997, Hawaii was one of the first states to grant tax credits to attract content producers to film their projects in the state. As of January 2021, 32 states offer tax credits to defray qualifying expenses of filming movie/TV productions. The competition to attract film/TV productions now […]
Read MoreUnderstanding the Role of the Hawaii Film/TV/Digital Production Tax Credit In Diversifying the Hawaii Economy
By Sumner La Croix and James Mak Blog: The Hawaii Film Tax Credit: An Update Hawaii is one of 32 states in 2020 to offer a tax credit to film, TV, and digital productions through the Hawaii Motion Picture, Digital Media and Film Production Tax Credit (hereafter “film credit”). Since the passage of the film […]
Read MoreLegalizing Casino Gaming to Fund Homes for Native Hawaiians
By James Mak Times are hard at the state legislature as lawmakers grapple with the fiscal crisis caused by the COVID-19 pandemic. Several bills to legalize some form of gambling in Hawaii have been introduced this session to generate more tax revenue. Although most have died (a bill to create a state lottery in Hawaii […]
Read MoreReviving Agriculture to Diversify Hawaii’s Economy
Hawaii state policymakers have identified agriculture as a sector capable of substantial expansion as part of the state’s efforts to diversify the economy. Agriculture has, however, been in decline in Hawaii for the last 40 years despite the presence of two state programs designed to keep lands in agriculture (the Important Agricultural Lands (IAL) program) […]
Read MoreThe Hawaii Research Activity Tax Credit: Is It Effective and How Can It Be Improved?
In 2013, the Hawaii State Legislature enacted a tax credit for Hawaii technology firms engaged in qualified research activities satisfying requirements for the federal research tax credit. After reviewing studies in the economics literature on the effectiveness of research tax credits in other states and countries, we conclude that a research tax credit can be […]
Read MorePre-Travel Testing and Hawaii’s Daily Trans-Pacific Visitors
By James Mak and Carl Bonham The front page headline on Honolulu Star-Advertiser’s October 16 issue read: SOLID REOPENING DAY. Indeed, it was. On October 15, 2020 8,224 trans-Pacific passengers flew into Hawaii compared to an average daily passenger count of only 1,923 passengers the week before. The spike in passenger arrivals is attributed to the start […]
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