Nevada's New Tax Amnesty Program Brings In $3.4 Million So Far
Submitted by admin on Wed, 07/28/2010 - 5:17pm
The amnesty, which will allow taxpayers to pay taxes owed without any interest or penalties, is projected to bring in an estimated $10 million to the cash-strapped state general fund.
The total tax generated so far will not all flow to the state’s general fund. Some of the tax revenue will go to support public schools and local governments.
A previous amnesty authorized by Gov. Jim Gibbons in 2008 brought in more than $27 million. It only covered sales and use taxes, business license fees and modified business taxes.
The new amnesty program, as approved in Assembly Bill 6 of the 2010 special session, is broader, including cigarette taxes, liquor taxes, insurance premium taxes and other levies.
The one-time amnesty is for businesses and individuals who owe taxes that were due before July 1, 2010 and have not been paid. The program will allow penalty and interest to be waived provided the outstanding tax debt is paid in full during the amnesty period.
Certain restrictions apply to taxpayers who have already entered into settlement agreements or offers in compromise with the Nevada Department of Taxation.
CARSON CITY – A new tax amnesty program initiated July 1 by the Nevada Department of Taxation has brought in $3.4 million in previously uncollected revenue through Tuesday, with just over two more months to go.
Dino DiCianno, executive director of the state tax agency, said about $2.7 million of the total collected so far is sales taxes, another $500,000 is modified business taxes and the remainder is smaller amounts covering liquor, live entertainment, tobacco, business licenses and other levies included in the amnesty.
DiCianno said about $1.2 million in penalty and interest charges associated with the tax payments have been waived as part of the amnesty program.
The amnesty, which will allow taxpayers to pay taxes owed without any interest or penalties, is projected to bring in an estimated $10 million to the cash-strapped state general fund.
The total tax generated so far will not all flow to the state’s general fund. Some of the tax revenue will go to support public schools and local governments.
A previous amnesty authorized by Gov. Jim Gibbons in 2008 brought in more than $27 million. It only covered sales and use taxes, business license fees and modified business taxes.
The new amnesty program, as approved in Assembly Bill 6 of the 2010 special session, is broader, including cigarette taxes, liquor taxes, insurance premium taxes and other levies.
The one-time amnesty is for businesses and individuals who owe taxes that were due before July 1, 2010 and have not been paid. The program will allow penalty and interest to be waived provided the outstanding tax debt is paid in full during the amnesty period.
Certain restrictions apply to taxpayers who have already entered into settlement agreements or offers in compromise with the Nevada Department of Taxation.
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— Nevada News Bureau
