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Hawaii economic council carves millions from projected state revenue for ‘very uncertain year’

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Hawaii economic council carves millions from projected state revenue for ‘very uncertain year’


HONOLULU (HawaiiNewsNow) – A council of economic experts Wednesday afternoon voted to carve hundreds of millions of dollars from the state’s bottom line over the next three years.

In addition to tax cuts Hawaii lawmakers approved two years ago, which are having a bigger impact on revenue than expected, the Council on Revenues saw Trump administration policies also dragging down Hawaii’s economy, at least in the short run.

The council brings together experts from universities and major industries to try and predict how much the government has to spend on state programs.

During Wednesday’s meeting via Zoom, that challenge wasn’t easy.

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Chair Kurt Kawafuchi, a tax attorney and former state tax director, summed it up: “It sounds like a very uncertain year.”

The experts on the revenue council admitted the main factor in the economy is the unknown, especially about tariffs.

University of Hawaii Economic Research Organization director Carl Bonham said tariffs that change daily are restraining business.

“The real problem right now is you can’t lock in a contract for costs of materials,” he said as other members chimed in with agreement. “So you don’t know what your costs will be three months from now.”

That uncertainty is piled on top of other issues, like a stalled real estate market due to high interest rates and rising development costs, according to Colliers’ Mike Hamasu.

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“It’s dismal, abysmal, it’s terrible right now, from our revenues perspective for our brokerage community its down considerably,” Hamasu said.

On the positive side, there is confidence about government construction continuing and defense spending holding up, for the most part, according to Scott Hayashi of SSFM International.

“Those kind of industries will continue on,” he said. “The other environmental kind of stuff, climate resilience funding, those kinds of things are going away. There is some risk, but we are not sure how it’s going to play out.”

Hayashi agreed with other members that Hawaii’s biggest economic driver, tourism, could also be affected.

“The first thing that most people were cutting out of their budget was travel, yeah, leisure travel,” the council said.

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They were also concerned about continuing strength of the U.S. dollar, which makes international travel to Hawaii more expensive.

Bonham pointed out that people who can afford a Hawaii vacation are more insulated from slight economic downturns, but a falling stock market could effect luxury travel.

“One of our biggest risks is going to be the stock market still for the higher end,” Bonham said.

The council voted to reduce the estimate of state revenue growth for the current fiscal year, which ends in June, from 6.4% to 5%, and for 2025-26 from -1.8% to -2.25%.

Kawafuchi said that could mean about half a billion dollars less tax revenue over three years.

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While that sounds like a lot of money, the state has surpluses and savings on hand that can absorb the reduction. Lawmakers say their main concern is potential cuts to federal social services, like Medicaid.



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Hawaii Offers Case-by-Case Tax Relief After Kona Low Storms – Honolulu Today

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Hawaii Offers Case-by-Case Tax Relief After Kona Low Storms – Honolulu Today


The Kona Low storms that devastated Hawaii’s coastal communities also disrupted the tax filing season, overwhelming residents and businesses focused on rebuilding.Honolulu Today

The Hawaii Department of Taxation will consider requests from taxpayers adversely affected by the recent Kona Low storms to waive penalties and interest for late filing and payment of state income taxes, but will not offer blanket relief like the IRS is providing for federal taxes. Affected individuals and businesses must submit a specific form to the state describing how the disaster impaired their ability to meet tax obligations.

Why it matters

The Kona Low storms hit Hawaii right during tax season, overwhelming residents and businesses focused on rebuilding. While the IRS is automatically granting federal tax deadline extensions, the state requires a more burdensome process for taxpayers to request relief, raising concerns about accessibility and equity.

The details

The Hawaii Department of Taxation (DOTAX) announced it will consider waiving penalties and interest for late state income tax filings and payments from April 20 to July 20, 2026, but only on a case-by-case basis. Taxpayers must submit Form L-115, the Tax Relief Request for State Declared Disasters, describing how the Kona Low storms impaired their ability to meet tax obligations. DOTAX says it will not preauthorize or preapprove waivers, and will notify taxpayers if additional information is needed after the form is filed.

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  • The Kona Low storms occurred between March 10 and March 23, 2026.
  • The IRS is granting federal tax deadline extensions until July 8, 2026.
  • The state of Hawaii’s tax relief period runs from April 20 to July 20, 2026.

The players

Hawaii Department of Taxation (DOTAX)

The state agency responsible for administering and enforcing Hawaii’s tax laws.

Gary H. Yamashiroya

A spokesperson for the Hawaii Department of Taxation.

Got photos? Submit your photos here. ›

What they’re saying

“We are not considering offering blanket relief because there is no general statutory authority for the Department to do so, whereas the IRS does have such federal statutory authority.”

— Gary H. Yamashiroya, Spokesperson, Hawaii Department of Taxation

What’s next

Affected Hawaii taxpayers must submit Form L-115, the Tax Relief Request for State Declared Disasters, to the Hawaii Department of Taxation by July 20, 2026 to request a waiver of penalties and interest for late state income tax filings and payments.

The takeaway

The disparity between the IRS’s automatic federal tax relief and Hawaii’s more burdensome case-by-case state tax relief process highlights the challenges faced by disaster-impacted taxpayers who must navigate complex bureaucratic requirements to obtain assistance, potentially creating inequities in access to relief.

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Man, 26, dies after jumping off cliff at ‘End of the World’ | Honolulu Star-Advertiser

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Man, 26, dies after jumping off cliff at ‘End of the World’ | Honolulu Star-Advertiser


Hawaii island police are investigating the possible drowning of a 26-year-old man after he reportedly jumped off a cliff in Keauhou over the weekend.

Police have identified him as Mathen Jackson, 26, of Kailua-Kona.

Kona patrol officers got a 5:13 p.m. call about a swimmer at distress at Lekeleke Bay, more commonly known as the “End of the World.”

According to a witness, Jackson decided to jump off the cliff, and became distressed in the strong current. His friend called 911, and then entered the water along with a passerby to rescue Jackson.

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They reportedly brought Jackson to a nearby tour boat that had responded to the distress call. Good Samaritans on board initiated CPR and used an AED on Jackson on the boat.

The boat transported Jackson to Keauhou Pier, where the Hawaii Fire Department took over life-saving measures. He was taken to Kona Community Hospital in critical condition, and later pronounced dead at 6:36 p.m.

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Police have initiated a coroner’s inquest investigation. No foul play is suspected at this time.

Anyone with any information is asked to contact Kona Patrol Acting Sergeant Reuben Pukahi at (808) 326-4646 ext. 253.




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Ahupua‘a restoration in Molokai offers potential flooding remedy | Honolulu Star-Advertiser

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Ahupua‘a restoration in Molokai offers potential flooding remedy | Honolulu Star-Advertiser




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