Governor proposes tax amnesty program

CARSON CITY -- Gov. Jim Gibbons on Monday announced a tax amnesty program that he hopes will induce delinquent taxpayers to pay $100 million in unpaid taxes.

Gibbons wants to suspend penalties on overdue sales taxes, state license fees and business payroll taxes.

The proposal will be discussed at the state Tax Commission meeting in June. The board could adopt an emergency regulation to start the tax amnesty program on July 1.

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

"By temporarily suspending the interest and penalties we would normally assess on delinquent taxpayers, we'll entice full payment of outstanding back taxes while encouraging businesses not already registered with the state to do so," Gibbons said. "Anyone who comes forward will still be obligated to pay all the underlying taxes they owe, which should generate significant state revenue during this difficult fiscal period."

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

The governor is looking at any way to generate revenue. He and legislators agreed last month on a plan to cut spending by $914 million because of declining state tax revenues.

Last week Gibbons announced plans to create a state efficiency commission to look at ways to cut state spending and improve service to consumers.

Capital Bureau writer Sean Whaley contributed to this report. Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3901.