ALBANY, N.Y., March 12 (UPI) -- Officials in states including New York and Hawaii said they may delay sending out state tax refunds due to budget issues.
New York Gov. David Paterson said the state may delay $500 million in income tax refunds to help offset the $9 billion deficit faced by officials, USA Today reported Friday.
The Hawaii Department of Taxation said some refunds may be withheld for up to five months, until the end of August, as part of Gov. Linda Lingle's plan to combat a decrease in revenue by pushing costs back until the fiscal period beginning in July.
Scott Pattison, executive director of the National Association of State Budget Officers, said states do not have official timetables for sending out refunds but the checks are generally sent out within 30 days of April 15.
"It's an indicator of how bad it is," he said of the delays. "You know things are bad when you have to do that."
Meanwhile, officials in California, which experienced delays in sending out income tax refunds last year, said a second year of delays is made less likely by the current trend of revenue running ahead of previous projections.
