State Gains $20M from Tax Amnesty Program
Lawmakers approved a tax amnesty provision in the January fix to the FY2009 budget. The provision was designed to generate state revenue by freeing taxpayers from penalties which would normally apply to back taxes. Funds collected from this program far exceeded the state’s expectations.
Throughout the duration of the program, which ended on May 31st, over 700 taxpayers took advantage of the amnesty program and resolved outstanding issues with the Arizona Department of Revenue.
“This program was clearly a benefit to both the state and the taxpayer,” says Senate Majority Whip, Pamela Gorman. “It’s great to see so many people setting things right on their tax bills.”
The program included income from the five-year period, 2002-2007.
The state realized a benefit over four times the anticipated amount as a result of this program. Although the figures are not yet official, current estimates say the state gained over $20 million in revenue.
The outstanding revenue collections far exceeded the Legislature’s expectations and will help offset declining revenues. With this additional funding, it will be easier to fund important programs for schools, public safety, and disadvantaged populations.