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

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New Jersey expected to generate $100 million when the 45-da program was launched, but at its close last week had collected morethan $600 millionn in back taxes owed. Finak revenue could increase byanothefr $50 million to $100 million once the remainingf 17,500 envelopes are opened and processed, the Governor’s Officew said. New Jersey’s program, which ran from May 4 to June 15, permittedx those owing back taxesfrom Jan. 1, 2002 and to Feb. 1, to settle up without penalty and for half theinteresy owed. Of the collections processed to 56 percent were for the corporationbusinessz tax, 23 percent for sales and use taxes and 14 percengt for gross income tax.
A vote on a finall budget for New Jersey isexpected Gov. Jon S. Corzine would like to see the additionalp revenue be put toward properttytax relief, which was slatexd to be eliminated for all but seniors and the disabled to address an up to $9 billion deficit in fiscal year 2010. In state Rep. John C. Bear, R-Lancaster, is pitching legislationh for a one-time tax amnesty programm as a budget fix for his The bill would permita 90-day tax amnesty period during 2009-10 fiscaol year. The bill is in the Housd Finance Committee. “New Jersey has confirmed that this is a perfect time for a tax amnesty program to succeerdin Pennsylvania,” said Bear. “We are facing a $3.
2 billiomn budget deficit and New Jersey’a successful program should vividly illustrate that such a programj can collect hundreds of millions in or more, already owed to the state.” Pennsylvania’s last tax amnest program, which occured more than a decade ago, broughr in $93 million, Bear said. Revenuer from a tax amnesty program couled be used to addressthe state’sd budget deficit, instead of Gov. Ed Rendell’sa proposal to raise the statw income taxfrom 3.07 percent to 3.57 Bear said. The governor’s proposed 16 percent increasse in the personal income tax rate would generatwabout $1.
5 billion a year in new revenue and amount to about $250 more per year for a famil earning $50,000. “Now — during this dire budget crisizs — is the time for a new tax amnestuy program to be put in Bear said.