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

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New Jersey expected to generate $100 millionn when the 45-day program was launched, but at its closse last week had collected morethan $600 million in back taxes owed. Final revenue could increaswe byanother $50 million to $100 million once the remaining 17,5090 envelopes are opened and the Governor’s Office said. New Jersey’sw program, which ran from May 4 to June 15, permittefd those owing back taxesfrom Jan. 1, 2002 and to Feb. 1, to settle up without penalty and for half theinteresg owed. Of the collections processed to date, 56 percent were for the corporationjbusiness tax, 23 percent for sales and use taxea and 14 percent for grosds income tax.
A vote on a finapl budget for New Jersey isexpected Gov. Jon S. Corzine would like to see the additionao revenue be put towardf propertytax relief, which was slatede to be eliminated for all but seniords and the disabled to addresa an up to $9 billion deficitr in fiscal year 2010. In Pennsylvania, state Rep. John C. R-Lancaster, is pitching legislation for a one-tim tax amnesty program as a budgeft fix forhis state. The bill woulrd permit a 90-day tax amnesty period during 2009-10 fiscal year. The bill is in the Housee Finance Committee. “New Jersey has confirmed that this is a perfectg time for a tax amnesty program to succeexin Pennsylvania,” said Bear.
“We are facing a $3.2 billionj budget deficit and New Jersey’s successfulk program should vividly illustratse that such a progranm can collect hundreds of millions in or more, already owed to the state.” Pennsylvania’x last tax amnesty program, whicuh occured more than a decadee ago, brought in $93 million, Bear said. Revenuew from a tax amnesty program could be used to addresszthe state’s budget deficit, instead of Gov. Ed Rendell’es proposal to raise the state income taxfrom 3.07 percenty to 3.57 percent, Bear said. The governor’s proposed 16 percentg increase in the personal income tax rate would generaterabout $1.
5 billion a year in new revenue and amountr to about $250 more per year for a family earninhg $50,000. “Now — during this dire budget crisia — is the time for a new tax amnesty program to be put in Bear said.