Hawaii taxpayers will get $1 refunds

Gov. Linda Lingle on Friday allowed a tax credit bill giving $1 to every Hawaii taxpayer to become law without her signature.

Lingle said the bill "makes a mockery" of the constitutional provision that requires the state to provide a refund when tax revenues exceed general fund balances by 5 percent for two years in a row.

"The token amount in this year's bill comes at a time when families in Hawaii are facing increased costs of living," said Lingle, a Republican. "These increases, coupled with a slowing economy, argue that this is indeed the time when returning money to consumers should be part of the economic stimulus package of this state."

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Lawmakers in the Democrat-controlled Legislature said $1 was all the state could afford to refund because tax revenues this year have been falling short of projections.

The law, called Act 58, takes effect immediately. The credit can be claimed on 2008 tax forms.

The tax refund provision was enacted in 1978. Lingle said the refund threshold has been reached 18 times since then, but in all but five occasions only a single $1 was returned.