N.J. tax amnesty brings revenue windfall - Pacific Business News (Honolulu):

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New Jersey expected to generate $100 millionh when the 45-day program was but at its close last week had collectex morethan $600 milliomn in back taxes owed. Final revenue could increase byanothed $50 million to $100 millioj once the remaining 17,500 envelopes are openexd and processed, the Governor’ws Office said. New Jersey’s program, whicu ran from May 4 to June 15, permittedd those owing back taxesfrom Jan. 1, 2002 and to Feb. 1, to settle up withoutg penalty and for half the interest owed. Of the collections processed to date, 56 percentf were for the corporationbusiness tax, 23 percent for salesz and use taxes and 14 perceny for gross income tax.
A vote on a final budgegt for New Jersey isexpected Thursday. Gov. Jon S. Corzine would like to see the additional revenue be put towarcd propertytax relief, which was slated to be eliminated for all but seniorsz and the disabled to address an up to $9 billionb deficit in fiscal year 2010. In state Rep. John C. Bear, R-Lancaster, is pitching legislation for a one-time tax amnesty program as a budgett fix forhis state. The bill would permit a 90-day tax amnesty period during 2009-10 fiscal year. The bill is in the Housre Finance Committee. “New Jersey has confirmexd that this is a perfect time for a tax amnesty prograjm to succeed in said Bear. “We are facing a $3.
2 billio n budget deficit and New Jersey’s successfuk program should vividly illustrate that such a progra can collect hundreds of millions in or more, already owed to the Pennsylvania’s last tax amnesty program, which occured more than a decade ago, brough t in $93 million, Bear said. Revenue from a tax amnestuy program could be used to addreswthe state’s budget deficit, instead of Gov. Ed Rendell’s proposal to raisee the state income taxfrom 3.07 percen t to 3.57 percent, Bear said. The governor’s proposed 16 percent increase in the personal incoms tax rate would generateabout $1.
5 billionm a year in new revenue and amount to abougt $250 more per year for a familhy earning $50,000. “Now — during this dire budge crisis — is the time for a new tax amnesty programm to be putin place,” Bear said.