TRENTON, NJ – It’s Tax Day and the numbers are in. The impact of the 3-month Tax Amnesty Program proposed by Assemblyman Robert Karabinchak, Assembly Speaker Craig Coughlin (Both D-Middlesex) and Wayne DeAngelo (D-Mercer, Middlesex) last April to help replenish state coffers amounts to $282 million in state revenue.
The Department of Treasury shared an estimation of the revenue in early April during an appearance before the Assembly Budget Committee, but has recently released a total gain from the program. The revenue received from the tax amnesty program is mostly attributable to sales and use tax, gross income tax and corporate business tax payments.
“The Tax Amnesty program has exceeded our expectations and brought in real revenue dollars that New Jersey can use as we prepare the FY2020 budget,” said Karabinchak. “By suspending penalties for unpaid taxes, we encouraged thousands of residents to take advantage and settle their back taxes. This program was a win for residents and for the state.”
“Every potential dollar counts. The tax amnesty program has proved successful in helping to create an effective and common-sense way to raise much needed revenue for our state’s budget,” Coughlin said.
A two-month tax amnesty program in late 2014 helped raise about $75 million from more than 26,000 people and businesses who settled their outstanding debt. A 2009 tax amnesty program raised $725 million, while a 2002 program raised $277 million. A 1996 tax amnesty raised $244 million.
The most recent 3-month tax amnesty program started on Nov.15 and ended Jan.15. The amnesty applied only to state tax liabilities for tax returns due between Feb.1, 2009 and Sept.1, 2017.
“These are great numbers for a three-month tax amnesty program,” said DeAngelo. “As we can clearly see, these programs work toward bringing outstanding tax revenue that can be put toward the state’s spending in the coming year.”