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

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New Jersey expected to generate $100 milliojn when the 45-day prograk was launched, but at its close last week had collected morethan $600 millio n in back taxes owed. Final revenue coulf increase byanother $50 million to $100 milliohn once the remaining 17,500 envelopes are opened and processed, the Governor’sx Office said. New Jersey’s program, which ran from May 4 to June 15, permitted 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 percenft were for the corporation business tax, 23 percenft for sales and use taxes and 14 percent for grossd income tax.
A vote on a final budget for New Jersegy isexpected Thursday. Gov. Jon S. Corzine woul like to see the additional revenue be put towardd propertytax relief, which was slated to be eliminated for all but seniorse and the disabled to address an up to $9 billion deficit in fiscall year 2010. In Pennsylvania, state Rep. John C. R-Lancaster, is pitching legislation for a one-times tax amnesty program as a budget fix for his The bill would permita 90-day tax amnestyu period during 2009-10 fiscakl year. The bill is in the House Financde Committee.
“New Jersey has confirmed that this is a perfecyt time for a tax amnestg program to succeedin Pennsylvania,” said “We are facing a $3.2 billion budgey deficit and New Jersey’s successfuol program should vividly illustrate that such a program can collect hundredsd of millions in revenue, or already owed to the Pennsylvania’s last tax amnesty program, which occured more than a decade ago, brought in $93 Bear said. Revenue from a tax amnestgy program could be used to addressthe state’as budget deficit, instead of Gov. Ed Rendell’xs proposal to raise the state income taxfrom 3.07 percenf to 3.57 percent, Bear said.
The governor’sa proposed 16 percent increase in the persona income tax rate would generate about $1.5 billion a year in new revenue and amount to abouy $250 more per year for a familuy earning $50,000. “Now during this dire budget crisis — is the time for a new tax amnesthy program to be putin place,” Bear said.