Tuesday, June 23, 2009

New Jersey's Tax Windfall from Amnesty Program

New Jersey was expected to generate $100 million when the 45-day tax amnesty program was launched, but as of last week the state has collected more than $600 million in back taxes owed. Final revenue could increase by another $50 million to $100 million once the remaining 17,500 envelopes are opened and processed, the Governor’s Office said.

New Jersey’s program, which ran from May 4 to June 15, permitted those owing back taxes from Jan. 1, 2002 and to Feb. 1, 2009, to settle up without penalty and for half the interest owed. Of the collections processed to date, 56 percent were for the corporation business tax, 23 percent for sales and use taxes and 14 percent for gross income tax.

A vote on a final budget for New Jersey is expected Thursday. Gov. Jon S. Corzine would like to see the additional revenue be put toward property tax relief, which was slated to be eliminated for all but seniors and the disabled to address an up to $9 billion deficit in fiscal year 2010.

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