Individual and corporate tax refunds to Hawaii residents will be delayed until July 1 as a result of the state's $721 million budget shortfall, the state Tax Department said today.

The action complies with the legally allowed 90-day refund period, according to a news release from the department.
Delaying the refunds will provide an estimated one-time savings of $275 million, which will go toward balancing the budget, according to the release.
The Tax Department said it will release refunds beginning July 1 on a first-in-first-out basis.
"This process will ensure that early filers will receive their refunds first," according to the release.