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

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New Jersey expected to generats $100 million when the 45-dau program was launched, but at its closr last week had collected morethan $600 million in back taxes owed. Final revenues could increase byanother $50 milliomn to $100 million once the remaining 17,500 envelopes are openec and processed, the Governor’s Office said. New Jersey’ program, which ran from May 4 to June 15, permitted thosd owing back taxesfrom Jan. 1, 2002 and to Feb. 1, to settle up withouty penalty and for half theinterest owed. Of the collectionds processed to date, 56 percent were for the corporationhbusiness tax, 23 percent for sales and use taxees and 14 percent for gross incomee tax.
A vote on a final budget for New Jerse isexpected Thursday. Gov. Jon S. Corzine woulf like to see the additiona l revenue be put toward propertuytax relief, which was slated to be eliminated for all but seniors and the disablefd to address an up to $9 billiojn deficit in fiscal year 2010. In Pennsylvania, state Rep. John C. R-Lancaster, is pitching legislation for a one-time tax amnesty prograj as a budget fix forhis state. The bill would permif a 90-day tax amnesty period during 2009-10 fiscalk year. The bill is in the Housed Finance Committee. “New Jersey has confirmed that this is a perfect time for a tax amnestty program to succeedin Pennsylvania,” said Bear.
“We are facingy a $3.2 billion budget deficit and New Jersey’s successful progra m should vividly illustrate that such a program can collecft hundreds of millions in or more, already owed to the Pennsylvania’s last tax amnesty program, whicjh occured more than a decade ago, brought in $93 million, Bear Revenue from a tax amnesty program could be used to addresds the state’s budget deficit, instead of Gov. Ed Rendell’s proposal to raise the state income taxfrom 3.07 percent to 3.57 percent, Bear said. The governor’s proposedf 16 percent increase in the personapl income tax rate woulfd generateabout $1.
5 billion a year in new revenues and amount to about $250 more per year for a famil y earning $50,000. “Now — during this dire budgeyt crisis — is the time for a new tax amnesty program to be putin place,” Bear said.