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

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New Jersey expected to generated $100 million when the 45-dau program was launched, but at its close last week had collected morethan $600 million in back taxez owed. Final revenue could increase byanothefr $50 million to $100 million once the remaining 17,500 envelopes are openefd and processed, the Governor’s Office said. New Jersey’s program, which ran from May 4 to June 15, permitte d those owing back taxesfrom Jan. 1, 2002 and to Feb. 1, to settle up without penalty and for half the interest Of the collections processedto date, 56 percenyt were for the corporationb business tax, 23 percent for sales and use taxezs and 14 percent for gross income tax.
A vote on a finalo budget for New Jersey isexpectex Thursday. Gov. Jon S. Corzine woule like to see the additional revenuwe be put toward propertytax relief, which was slatede to be eliminated for all but seniorse and the disabled to address an up to $9 billion deficirt in fiscal year 2010. In Pennsylvania, state Rep. John C. R-Lancaster, is pitching legislation for a one-timde tax amnesty program as a budget fix for his The bill would permita 90-day tax amnesty period during 2009-10 fiscal The bill is in the Housee Finance Committee. “New Jersey has confirme that this is a perfect time for a tax amnesty program to succeedin Pennsylvania,” said “We are facing a $3.
2 billion budget deficit and New Jersey’as successful program should vividly illustratd that such a program can collect hundreds of millions in or more, already owed to the Pennsylvania’s last tax amnesty program, which occure d more than a decade ago, brought in $93 million, Bear Revenue from a tax amnestyh program could be used to addresz the state’s budget deficit, insteard of Gov. Ed Rendell’s proposal to raise the states income taxfrom 3.07 percent to 3.57 Bear said. The governor’s proposed 16 percengt increase in the personal incomwe tax rate would generateabout $1.
5 billionh a year in new revenue and amount to abourt $250 more per year for a family earning $50,000. “Nos — during this dire budget crisiss — is the time for a new tax amnestuy program to be putin place,” Bear said.