TRENTON, N.J. (AP) -- A record $725 million in delinquent taxes flooded the New Jersey treasury during a recent tax amnesty, including $379 million recorded in the final four days.
A daily accounting of revenue collected during the six-week amnesty, made available through an open public records request, shows many tax delinquents held onto their money till the last moment, postmarking their payments just under the deadline.
Gov. Jon Corzine said the number of unopened envelopes topped 17,500 when the program ended on June 15.
Amnesty allowed delinquent corporate and residential taxpayers to settle state taxes owed in 2002 through Feb. 1 without penalty and half the interest. A full accounting of the revenues and the number of delinquents who settled their debts is expected after the tax amnesty administrator returns from vacation next week, said Treasury spokesman Tom Vincz.
Republicans criticized the 11th-hour money find as a political ploy. However, the accounting records show that the money was indeed received just under deadline.
Collections surpassed the $200 million Treasury had projected on June 11, four days before the amnesty ended. Another $201 million poured in the following day, when Treasury officials realized the program would greatly exceed revenue expectations, Vincz said.
More than $172 million was recorded on the final day of amnesty and $143 million was recorded after the program ended.
New Jersey collected $277 million during its last amnesty in 2002. A 1996 amnesty produced $244 million and a 1987 amnesty generated $87 million, records show.
State Treasurer David Rousseau said the program's success -- despite the recession -- was due in part to a $2 million marketing campaign targeting New Jersey tax cheats nationally.
Preliminary figures show more than half the revenue is from delinquent corporate business taxes and a quarter from sales and use taxes owed.
The most recent windfall delayed state budget deliberations for a week while lawmakers figured out how to spend the money. At Corzine's urging, the money was used to restore property tax rebates for homeowners who make less than $75,000 a year. Renters were not eligible.
The amnesty was created to help close a fiscal 2009 budget gap. State Treasurer David Rousseau projected $100 million in revenue from the amnesty, then doubled the projection to $200 million. The excess revenue will be used in fiscal 2010, which began on July 1.
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