Last fall’s 61-day Kentucky tax amnesty program last fall netted the commonwealth almost $57 million. That’s according to figures supplied by the Finance and Administration Cabinet spokeswoman Pamela Trautner. She says more than 27,000 delinquent taxpayers from all 120 Kentucky counties applied for program.
“Now as far as the ones who filed through this tax amnesty, the department will monitor those taxpayers for the next three years to make sure they continue to comply and to pay their taxes because if they don’t there is a clawback provision and all of the interest and fees and penalties can be added back to that taxpayer,” Trautner says.
A tax amnesty program is being credited with pushing up General Fund revenue by 3.8 percent in January. State Budget Director Jane Driskell says individual income tax revenue rose by more than 35 percent and corporate income tax receipts rose nearly 83 percent as those who took advantage of the amnesty offer paid up.
Money coming into Kentucky’s state accounts recently indicates a positive trend, but an official who studies the figures warns against reading too much into them. For the first six months of the fiscal year, receipts have increased almost four percent. The official revenue forecast for the entire year calls for two point four percent growth.
Kentucky’s latest round of tax amnesty is coming to a close and state officials say the program has been a success. Beginning last month, the state offered tax delinquents a chance to pay what they owe and a portion of the related penalties without fear of further punishment or prosecution. Lawmakers hope to collect $55 million before the program ends at 9 p.m. Friday. Department of Revenue Commissioner Thomas Miller told lawmakers Thursday that his office has recovered tax revenue from people in all 120 counties of the Commonwealth and in all 50 states.
The Kentucky Department of Revenue has been getting up to 1,000 calls a day in the final week of an amnesty offer to delinquent taxpayers. The rising interest has prompted the state department to extend operating hours at 10 field offices around the state.
The deadline is nearing for delinquent Kentucky taxpayers to take advantage of an amnesty period. Kentucky officials say this is the first amnesty period in 10 years and allows people to pay taxes that are due without paying fees or penalties and having the interest reduced by half.
Kentucky’s tax amnesty program has brought in thousands of payments, and the state expects more before the Nov. 30 deadline. The amnesty allows delinquent taxpayers to pay back taxes without penalties, and cuts interest amounts by half. Finance and administration secretary Lori Flanery says taxpayers save 30 percent on average with amnesty.