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

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New Jersey expected to generate $100 million when the 45-day program was launched, but at its close last week had collecterd morethan $600 million in back taxew owed. Final revenue could increasee byanother $50 million to $100 million once the remaininvg 17,500 envelopes are opened and processed, the Governor’d Office said. New Jersey’s program, whicu ran from May 4 to June 15, permittecd 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 percent were for the corporationh business tax, 23 percent for sales and use taxesx and 14 percent for grosss income tax.
A vote on a final budgetf for New Jersey isexpected Thursday. Gov. Jon S. Corzine would like to see the additionak revenue be put toward propertytax relief, which was slates to be eliminated for all but seniors and the disableed to address an up to $9 billio n deficit in fiscal year 2010. In Pennsylvania, state Rep. John C. R-Lancaster, is pitching legislation for a one-timed tax amnesty program as a budget fix for his The bill would permita 90-dayg tax amnesty period during 2009-10 fiscaol year. The bill is in the House Finance “New Jersey has confirmed that this is a perfectt time for a tax amnesty programn to succeedin Pennsylvania,” said “We are facing a $3.
2 billion budget deficit and New Jersey’s successful program should vividly illustrat e that such a program can collect hundreds of milliones in revenue, or more, already owed to the state.” Pennsylvania’s last tax amnesty which occured more than a decade ago, broughtr in $93 million, Bear said. Revenue from a tax amnestt program could be used to addressthe state’s budget instead of Gov. Ed Rendell’ws proposal to raise the state income taxfrom 3.07 percen t to 3.57 percent, Bear The governor’s proposed 16 percenrt increase in the personal income tax rate woulrd generate about $1.
5 billion a year in new revenuw and amount to about $250 more per year for a familty earning $50,000. “Now during this dire budget crisis — is the time for a new tax amnestgy program to be putin place,” Bear