Posts tagged: tax amnesty
OLYMPIA – Local governments should see a jump in tax revenue in mid May as the state funnels some $57 million from a recent tax amnesty to them, but the exact amount each city and county will see from the program won’t be known for weeks.
A state Department of Revenue spokesman said the increase in revenue from businesses that didn’t pay their sales and use taxes could be roughly equal to each area’s share of the state’s economy. The city of Spokane represents about 3.7 percent of the economy in the state’s most recent figures, and all of Spokane County about 6.8 percent, Mike Gowrylow said.
Using that yardstick, the city could see an extra $2.1 million and all governments around the county a total of $3.9 million. But that assumes businesses that avoided or underpaid taxes until the amnesty was offered are equally distributed throughout the state, and they probably aren’t, Gowrylow said.
“Some communities are going to see bigger bumps. It depends on where the business was located,” he said.
OLYMPIA – Business organizations regularly bemoan how little recognition, respect and support they get from the state. But evidence to the contrary was clear last week, when the state announced a “windfall” of some $321 million from a tax amnesty program.
It showed that when there’s something fishy about what they’ve been doing, businesses get the benefit of the doubt that poor people don’t.
Cheers for the money were second only to Mariner’s improving win-loss record, and with good reason. The state originally thought it might pick up about $24 million by offering businesses a chance to clear up their tax debts without penalties or interest. It got $321 million – $264 million of which the state keeps after sending local governments their share – which is real money in anyone’s book. It offers the Legislature, in the words of Gov. Chris Gregoire, a chance to balance the state’s biennial budget and “go home.”
No one seemed concerned, however, about the reason for the unexpected bonanza….
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OLYMPIA — The state collected $321 million in delinquent taxes from nearly 9,000 businesses through an amnesty program that ended Saturday. The success of the program surprised state officials, who were expecting to pick up about $24 million when the program was proposed in December.
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