courtesy of ‘zenobia_joy’
The District is on the verge of announcing a two-month amnesty for most taxes, including sales and income taxes, according to the Business Journal’s Michael Neibauer. That means you can pay your back taxes without penalty, but still including the interest owed. Currently outstanding to the District’s CFO are $200M in unpaid taxes. Getting the chance to pay them without penalty might get a few of the scofflaws to pony up with the dough necessary to help offset the massive $550M budget deficit that the District is currently facing.
Do tax amnesty programs help? Well, when Pennsylvania did the same thing last month, they collected $261M in back taxes that they were owed, approximately $70M more than they expected. New Jersey collected $725M in their tax amnesty last year. While tax cheats in the District owe significantly less than New Jersey or PA, it’d be a surprise to not see the city pickup a good $50-75M on this amnesty, and hopefully more.