Commission approves tax amnesty provisions

CARSON CITY -- Emergency regulations spelling out a tax amnesty program that will begin July 1 were adopted unanimously Monday by the Nevada Tax Commission.

The tax amnesty plan was announced last month by Gov. Jim Gibbons as a way to help bring in needed revenue during a major economic slowdown that has caused major financial problems for the state budget.

There is about $76 million in outstanding unpaid taxes owed to the department that could be paid to the state under the plan, which will run through Sept. 30.

But department Executive Director Dino DiCianno said he could not provide a reliable estimate of what the program will bring in.

"That would be very difficult for me to estimate that right now," he said. "I do not know."

A similar program in 2002 netted $7.3 million; $2.8 million was collected in 1993.

The plan will allow the state Tax Department to suspend interest and penalties on overdue sales taxes, state license fees and business payroll taxes. Excise taxes, such as liquor or cigarette revenues, are not part of the amnesty plan.

"The purpose of the program is to require those with outstanding liabilities to come forward, to come clean," DiCianno said.

With the Tax Commission's approval, Gibbons is scheduled to sign the emergency regulations finalizing the amnesty program later this month.

"Providing a temporary incentive for businesses to balance their ledger with the state is a proven revenue generator, which is much needed during this difficult fiscal time," Gibbons said. "All the revenue we collect during this amnesty minimizes the effect the economic downturn will have on state services."

"This is a one-shot opportunity for businesses delinquent in their taxes to get square with the state," he said. "The penalties and interest the state is waiving can be substantial, so I hope these business owners realize and take advantage of the opportunity before them."

DiCianno said the plan also will be used to encourage new businesses that have not filed with the department to come forward and register with the department.

The state Taxation Department can administer the program without adding workers.