Bill > S3863

Introduced Session

The bill requires the Director of the Division of Taxation in the Department of the Treasury to establish a 90-day State tax amnesty period, to end no later January 15, 2026. The amnesty period would apply only to State tax liabilities for tax returns due on and after September 1, 2017 and before January 1, 2025. During the amnesty period, a taxpayer who has failed to pay a State tax can pay the amount of unpaid tax and one-half of the balance of interest that is due as of November 1, 2024, without the imposition of the remaining one-half of the balance of interest that is due as of November 1, 2024, recovery fees, civil penalties, and criminal penalties arising out of the late payment. The amnesty would not be available to a taxpayer who, at the time of payment, is under criminal investigation or charge for any State tax matter. If a taxpayer eligible for the amnesty fails during the amnesty period to pay taxes owed, the bill subjects that taxpayer to a five percent penalty, which the director may not waive or abate. The five percent penalty would be in addition to all other penalties, interest, or collection costs otherwise authorized by law. If a person is notified by the Office of Criminal Investigation in the Division of Taxation that the person is under criminal investigation for a State tax matter, they would not be eligible for amnesty under the program unless the Office of Criminal Investigation certifies to the director that the State tax matter involving that person was resolved. Further, a taxpayer would not be eligible for amnesty under the bill unless that taxpayer pays the full amount of the tax, reduced interest, and applicable penalty, if any, in accordance with the rules and procedures established by the director. The bill establishes a dedicated account in the Department of Education to be known as the Stabilization Aid Account and requires all of the moneys collected by the State through the tax amnesty program, excluding certain revenues dedicated for specific purposes by the State Constitution, to be deposited into the special account for the purpose of providing Stabilization Aid to school districts that experience a reduction in State aid compared to the prior school year. To receive Stabilization Aid, a school district would be required to submit an application to the Commissioner of Education. The bill requires that the application include, at a minimum, a written plan explaining how the school district intends to fund operations in future school years in which the school district does not receive Stabilization Aid or similar supplemental State school aid. The bill appropriates a sum not to exceed $15 million from the proceeds collected through the amnesty period for the costs incurred to carry out and administer the program. The bill requires a contract for advertising services for the State tax amnesty program to be procured in an expedited manner.

AI Summary

Committee Categories

Carmen Amato (R)*, 

Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 11/18/2024)

Official Document