ROANOKE TIMES 

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, May 22, 1990                   TAG: 9005220295
SECTION: VIRGINIA                    PAGE: B3   EDITION: METRO 
SOURCE: Associated Press
DATELINE: RICHMOND                                 LENGTH: Medium

TAX AMNESTY REAPS $32.2 MILLION

Virginia's get-tough stance with delinquent taxpayers has paid off, netting $1 in overdue taxes for each 4.3 cents the state spent advertising a tax amnesty program this spring, officials said Monday.

Virginia took in $32.2 million in overdue taxes during the two-month amnesty period that ended March 31, state Tax Commissioner William Forst told the House Appropriations Committee.

At their monthly meeting, committee members heard that general revenue collection continues to lag behind state estimates for the year's intake.

The state's revised budget calls for 1989-1990 revenue to grow 5.2 percent over last year. But through April, revenue had risen just 2.8 percent.

"Although we've got some ground to make up, we feel we will meet the revenue estimate for the end of the year," Finance Secretary Paul Timmreck said.

Under the tax amnesty program, the state promised that delinquent taxpayers could avoid hefty penalties if they paid back taxes and interest promptly. More than 25,000 people paid up.

The state shelled out $1.4 million for hard-hitting television advertisements and other promotions, Forst said. The ads threatened tax collectors would track down deadbeats and padlock businesses once the amnesty deadline passed.

"The ads were quite harsh . . . and they worked very well," Forst said.

Tax collectors threatened to shut down 90 businesses for non-payment last month, Forst said. Those businesses owed a total of $1.3 million. The state actually padlocked two businesses, Forst said.

"In one case the owner of the business has paid up, so he's open now. In the other case, when the agents got there the owner's daughter was quite relieved. She said her father should have gone out of business years ago," Forst said.

The largest amnesty payment was $1.3 million, the smallest one cent, Forst said. One taxpayer filed 10 years of income tax returns, another turned in a return for 1946.

Most of the late payments came in the final week of the amnesty offering, Forst said. Of 34 states conducting an amnesty program, Virginia ranks 12th in revenue collected, he said.

Nearly 63 percent of amnesty applications came from individuals, 37 percent from businesses. The state reaped an average payment of $815 from individuals and an average $1,311 from businesses.

In addition to individual income taxes, taxpayers paid overdue sales, withholding, estate, gasoline and other taxes. 


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