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Tax amnesty program generates $17 million

December 19, 2012

By MARIA SHANAHAN
mshanahan@ricentral.com

PROVIDENCE – Rhode Island’s tax amnesty program generated more than $17 million following its conclusion last month, according to the Rhode Island Division of Taxation.
The amnesty provided Rhode Islanders with the opportunity to pay delinquent state taxes without penalties and with an interest rate reduction of 25 percent.
“We’re delighted that so many Rhode Island taxpayers took advantage of this opportunity to clean their slates and get a fresh start,” David M. Sullivan, Rhode Island tax administrator, said in a statement.
The top sources of revenue for the amnesty were $5.8 million in personal income taxes, $4.6 million in public service corporation taxes, $3.6 million in sales and use taxes and $1.8 million in corporate taxes.
The $17 million generated during the program’s duration from Sept. 2 and Nov. 15, 2012, is more than the $9.9 million collected from the last statewide amnesty program in 2006. It also exceeds the $10.9 million the state estimated the amnesty would generate for the current fiscal year.
The state also expects the final amnesty total to be greater than $17 million because some applicants are on payment plans with final amounts due Dec. 15, while other applications are still being finalized.
The tax administrator is required by state law to provide an analysis of the program by Jan. 1, 2013 to the chairpersons of the House and Senate Finance Committees and to members of the state’s Revenue Estimating Conference.
The amnesty was the result of legislation approved by the Rhode Island General Assembly in June and signed into law by Gov. Lincoln Chafee. The Rhode Island Division of Taxation received more than 6,650 applications for the amnesty.
The Division of Taxation does not monitor applicants by city or town.

Source 
Southern Rhode Island Newspapers
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