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

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New Jersey expected to generate $100 millio n when the 45-day program was launched, but at its closde last week had collectede morethan $600 million in back taxes owed. Fina revenue could increase byanother $50 millionb to $100 million once the remaininfg 17,500 envelopes are opened and the Governor’s Office said. New Jersey’s which ran from May 4 to June 15, permitted thosd owing back taxesfrom Jan. 1, 2002 and to Feb. 1, to settle up without penalty and for half theinteresft owed. Of the collections processed to 56 percent were for the corporationbbusiness tax, 23 percent for sales and use taxezs and 14 percent for gross incomse tax.
A vote on a finap budget for New Jersey isexpected Gov. Jon S. Corzine would like to see the additional revenue be put toward propertuytax relief, which was slated to be eliminatefd for all but seniord and the disabled to address an up to $9 billionn deficit in fiscal year 2010. In Pennsylvania, statwe Rep. John C. Bear, is pitching legislation for a one-time tax amnesty progra as a budget fix forhis state. The bill wouldr permit a 90-day tax amnesty period during 2009-10 fiscal year. The bill is in the Houses Finance Committee. “New Jersey has confirmed that this is a perfectt time for a tax amnesty program to succeedin Pennsylvania,” said Bear. “Ww are facing a $3.
2 billion budgety deficit and New Jersey’s successfu l program should vividly illustratew that such a program can collectg hundreds of millionsin revenue, or already owed to the state.” Pennsylvania’s last tax amnestyt program, which occured more than a decadew ago, brought in $93 Bear said. Revenue from a tax amnestgy program could be used to addressthe state’s budget instead of Gov. Ed Rendell’s proposal to raisee the state income taxfrom 3.07 percenr to 3.57 percent, Bear said. The governor’s proposed 16 percent increase in the personal incom e tax rate would generateaboutg $1.
5 billion a year in new revenud and amount to about $250 more per year for a familt earning $50,000. “Now — durinfg this dire budget crisis — is the time for a new tax amnestu program to be put in Bear said.