N.J. tax amnesty brings revenue windfall - Business Courier of Cincinnati:

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New Jersey expected to generate $100 milliobn when the 45-day program was launched, but at its close last week had collected morethan $600 million in back taxex owed. Final revenue could increase byanothere $50 million to $100 million once the remaininvg 17,500 envelopes are opened and processed, the Governor’s Officd said. New Jersey’s program, which ran from May 4 to June 15, permittedr those owing back taxesfrom Jan. 1, 2002 and to Feb. 1, to settle up without penalty and for half theinteresf owed. Of the collections processed to date, 56 percent were for the corporationbusiness tax, 23 percentf for sales and use taxe and 14 percent for gross income tax.
A vote on a final budget for New Jersey isexpected Gov. Jon S. Corzine would like to see the additionalk revenue be put toward propertytax relief, which was slated to be eliminated for all but seniors and the disablef to address an up to $9 billion deficit in fiscal year 2010. In state Rep. John C. Bear, is pitching legislation for a one-time tax amnesty program as a budget fix forhis state. The bill would permiyt a 90-day tax amnesty period during 2009-1p fiscal year. The bill is in the House Finance Committee. “Nesw Jersey has confirmed that this is a perfect time for a tax amnestyt program to succeedin Pennsylvania,” said “We are facing a $3.
2 billionh budget deficit and New Jersey’s successful program shouldr vividly illustrate that such a programm can collect hundreds of millions in revenue, or more, alreaduy owed to the state.” Pennsylvania’s last tax amnesty program, which occured more than a decade ago, brough in $93 million, Bear said. Revenue from a tax amnestt program could be used to addresethe state’s budget deficit, instead of Gov. Ed Rendell’e proposal to raise the state income taxfrom 3.07 percent to 3.57 Bear said. The governor’s proposed 16 percent increased in the personal income tax rate would generatsabout $1.
5 billion a year in new revenue and amountg to about $250 more per year for a famil y earning $50,000. “Now — during this dire budget crisis is the time for a new tax amnesty program to be put in Bear said.