Wednesday, February 18, 2009

Governor Bobby Jindal Announces Proposal For Tax Amnesty Period

Governor Bobby Jindal is proposing legislation for a Tax Amnesty period during fiscal year 2009-2010 for a two-month period determined by the Secretary of Revenue. Based on collections from the last tax amnesty period in 2001, Governor Jindal believes that the state could collect up to $150 million in back taxes.

The Governor said under his proposed legislation, the tax amnesty program will generate one-time revenue to the long-term benefit of the state and as such, will not be incorporated into the 2009-2010 operational budget.

Applicable years for this amnesty will include all periods since the last amnesty in 2001 – July 1, 2001 through December 30, 2008. Based on accounts receivables as of September 2008, the state has around $297 million in outstanding collections since the last amnesty period in 2001. This estimate includes both interest and tax.

During the Governor’s proposed tax amnesty period, the state will waive 100 percent of the accrued penalties owed on unpaid taxes and 50 percent of the interest, if the taxpayer pays 100 percent of the owed tax and 50 percent of the accrued interest.

No comments: