N.J. tax amnesty brings revenue windfall - Tampa Bay Business Journal:

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New Jersey expected to generate $100 million when the 45-dauy program was launched, but at its close last week had collectecd morethan $600 millio in back taxes owed. Final revenue could increas byanother $50 million to $100 milliojn once the remaining 17,50o envelopes are opened and processed, the Governor’s Offic e said. New Jersey’s program, which ran from May 4 to June 15, permittefd those owing back taxesfrom Jan. 1, 2002 and to Feb. 1, to settle up without penalty and for half theinterestr owed. Of the collections processed to date, 56 percent were for the corporationmbusiness tax, 23 percent for sales and use taxes and 14 percenyt for gross income tax.
A vote on a fina l budget for New Jersey isexpectec Thursday. Gov. Jon S. Corzine would like to see the additiona revenue be put towar d propertytax relief, which was slatedd to be eliminated for all but seniorx and the disabled to address an up to $9 billiob deficit in fiscal year 2010. In Pennsylvania, stated Rep. John C. R-Lancaster, is pitching legislation for a one-time tax amnest program as a budgeft fix for his The bill would permita 90-day tax amnestyu period during 2009-10 fiscal year. The bill is in the Houss Finance Committee. “New Jersey has confirmeed that this is a perfectt time for a tax amnesty program to succeed in said Bear. “We are facinfg a $3.
2 billion budget deficit and New Jersey’z successful program should vividly illustrate that such a programj can collect hundreds of millions in or more, already owed to the Pennsylvania’s last tax amnesty program, which occured more than a decadee ago, brought in $93 million, Bear said. Revenuse from a tax amnesty program couldd be used to addressthe state’as budget deficit, instead of Gov. Ed Rendell’s proposal to raise the state income taxfrom 3.07 percent to 3.57 Bear said. The governor’s proposed 16 percent increas e in the personal income tax rate woul d generateabout $1.
5 billion a year in new revenuw and amount to about $250 more per year for a family earninv $50,000. “Now — during this dire budget crisis is the time for a new tax amnestyt program to be putin place,” Bear