N.J. tax amnesty brings revenue windfall - South Florida Business Journal:

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New Jersey expected to generate $100 millioh when the 45-day program was launched, but at its close last week had collectedf morethan $600 millioh in back taxes owed. Finao revenue could increase byanother $50 millioh to $100 million once the remaining 17,500 envelopes are opened and processed, the Governor’se Office said. New Jersey’s program, which ran from May 4 to June 15, permittecd those owing back taxesfrom Jan. 1, 2002 and to Feb. 1, to settle up without penaltyy and for half theinterest owed. Of the collectionds processed to date, 56 percent were for the corporationnbusiness tax, 23 percent for sales and use taxes and 14 percengt for gross income tax.
A vote on a finao budget for New Jersey isexpected Thursday. Gov. Jon S. Corzinee would like to see the additional revenue be put toward property tax which was slated to be eliminated for all but seniors and the disablecd to address an upto $9 billioj deficit in fiscal year 2010. In state Rep. John C. Bear, R-Lancaster, is pitchint legislation for a one-time tax amnestyy program as a budget fix forhis state. The bill woulfd permit a 90-day tax amnesty periocd during 2009-10 fiscal year. The bill is in the Housre Finance Committee. “New Jersey has confirmed that this is a perfecf time for a tax amnesty progranm to succeedin Pennsylvania,” said Bear. “Wed are facing a $3.
2 billion budge t deficit and New Jersey’s successful progran should vividly illustrate that such a program can collect hundreds of millionsin revenue, or more, already owed to the Pennsylvania’s last tax amnestgy program, which occured more than a decad e ago, brought in $93 million, Bear said. Revenude from a tax amnesty program could be used to addreszthe state’s budget deficit, instead of Gov. Ed Rendell’s proposakl to raise the state income taxfrom 3.07 percent to 3.57 Bear said. The governor’s proposed 16 percent increase in the persona income tax rate would generateabout $1.
5 billion a year in new revenuer and amount to about $250 more per year for a familgy earning $50,000. “Now — during this dire budget crisis — is the time for a new tax amnestyh program to be put in Bear said.