New tax amnesty program proposed
Just weeks after the conclusion of a tax amnesty program that netted the state more than $16 million, Gov. John Baldacci has proposed two new tax amnesty programs in his budget plan.
Under the two-part proposal, 95% of the penalties owed on unpaid tax liabilities from July 1, 2005, to Dec. 31, 2009, would be waived, the Bangor Daily News reported. For tax bills assessed before June 30, 2005, 95% of penalties and 95% of interest would be waived. Back taxes would have to be paid during a proposed window of Sept. 1, 2010, to Nov. 30, 2010.
Maine Revenue Services estimates that the state is owed $257 million in taxes, penalties and interest, the paper reported. The Tax Receivables Reduction Initiative, a tax amnesty program that waived 90% of penalties owed and ended on Nov. 30, brought in $16.2 million, well above the projected $9 million. Corporate taxpayers paid more than $7 million, while about $5 million came from individual income taxpayers. Mainebiz requested the names of businesses that participated in the initiative, but was told by Maine Revenue Services that the information was confidential.
Finance Commissioner Ryan Low said the latest tax amnesty proposal is expected to bring in $9.5 million. But some lawmakers argued that administering another tax amnesty program so soon won't prove as effective, according to the Daily News.
Go to the article in the Bangor Daily News >>
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