Tax collection quickens as amnesty brings in another $39.7M

However, tax payments will have to come in more rapidly to reach the $200 million state officials have estimated will be paid when the amnesty expires June 15. In the past 11 days, the state has collected $39.7 million, following a trend from past amnesties wherein collections spike in the waning days of the program.

According to the Division of Taxation, most of those taking advantage of the amnesty don’t owe huge bills, with the average payment equaling $1,100.

Program administrator Mark Wintermute answered a series of questions about the amnesty in a Webcast posted on the division’s Web site. Watch the Webcast .

Wintermute said many of the taxpayers are residents and businesses that previously were compliant, but fell behind in their taxes this year.

“The program is designed to help them get a fresh start while collecting money that New Jersey can use for needed programs and services,” Wintermute said. “After the amnesty ends, the Division of Taxation will be able to dedicate more resources to collecting from hardcore delinquent taxpayers.”

Under the amnesty, which began May 4, the state is waiving penalties and half the interest owed on unpaid taxes for returns due between Jan. 1, 2002, and Feb. 1., 2009. Those who don’t pay will be hit with a new 5 percent penalty on top of existing interest and penalties.

With the program’s success dependent on public awareness, officials have promoted it through a variety of methods, “which contributes to maximizing taxpayer participation,” Treasurer David Rousseau said.

E-mail Andrew Kitchenman at akitchenman@njbiz.com.