The tax amnesty program designed to encourage businesses that owe the state money to pay up began Tuesday.
Gov. Jim Gibbons signed the emergency regulations implementing the program, saying he hopes it will being in several million dollars to the state treasury.
Gibbons called for an amnesty after being told by taxation Director Dino Dicianno there is an estimated $76 million in taxes owed the state. Previous tax amnesty periods not only brought in several million dollars, they convinced numerous unregistered businesses to sign up and become ongoing taxpayers.
The regulations were approved by the Nevada Tax Commission in early June and officially took effect July 1. The amnesty period will run through the end of September.
Businesses that take advantage of the program still have to pay the taxes they owe. But during the amnesty, the state will forgive all interest and penalties they owe on both the Modified Business Tax, business license fees and the Sales and Use Tax.
"During the recent Special Session, the Legislature relied on at least $4 million from this program to help balance the state's current budget shortfall, so it's important the program get up and running," the governor said in a prepared statement.
In addition to the state share of the collections that will go to the General Fund, school districts and local governments will receive additional revenue from the amnesty collections.
The tax amnesty in 2002 brought in more than $7.3 million for state and local governments. A similar amnesty program in 1993 generated more than $2.8 million in revenue for state and local governments.
"I truly hope businesses take this one-time opportunity to pay what they owe the state," said Gibbons. "This program should help our immediate needs with a cash infusion, but also our long-term needs by bringing new businesses into the tax system that haven't already registered."
- Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.