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The Associated Press March 12, 2010, 10:38AM ET

Hawaii bill would prevent future tax refund delays

Hawaii lawmakers are advancing a proposal that would prevent future governors from delaying income tax refunds until July.

Gov. Linda Lingle plans to slow the payment of this year's refunds until July, when the next fiscal year begins, so that the state can save $275 million on paper.

Democratic legislators say the Republican governor's move is an accounting trick that shouldn't be repeated.

The proposed legislation would require the state to provide refunds within 90 days of the filing of a return.

Current law allows the state to pay a refund 90 days after the tax return is received or 90 days past April 20, whichever is later.

The bill passed the House and is pending in the Senate.

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