December 23, 2024
Archive

Tax amnesty program yielded $37 million

AUGUSTA – The tax amnesty program Gov. John Baldacci offered as part of his strategy to reduce a budget shortfall last year brought in $37.6 million, more than twice its original goal, according to final figures released last week.

A report prepared by Maine Revenue Services for the Legislature’s Taxation and Appropriations committees says the amnesty program returned $42 for every $1 spent. It also says that $16 million of the amnesty revenues, or 43 percent, came from out of state.

“Increased focus on these types of entities may be warranted,” the report suggests.

In addition to the $37 million raised, “there is a residual benefit of having new taxpayers on the tax rolls,” the report says. It adds that allowing delinquent taxpayers to mend their ways “may make it easier for them to stay in compliance.”

The three-month tax amnesty program, which ended last Dec. 1, was open to people who underpaid their Maine taxes or didn’t pay at all. Its original goal was $14 million. Preliminary figures last December showed nearly $36 million had been collected.

The program, which was authorized by the Legislature, was heavily publicized through television and newspaper advertisements trumpeting the slogan, “Get to us before we get to you.”

Its purpose was to raise money to help offset a state budget shortfall, but its overriding goal was to improve voluntary compliance with state tax laws, Maine Revenue Services’ report said.

The average payment collected by the state was $1,907.

Individual income taxes accounted for the largest portion of the total, $15.6 million, while $8.5 million was collected in corporate income taxes and $10.7 million in sales and use taxes.


Have feedback? Want to know more? Send us ideas for follow-up stories.

comments for this post are closed

You may also like