AUGUSTA (AP) – Gov. John Baldacci is hoping to fatten the state’s coffers by offering a tax-amnesty program, so people who underpaid their taxes or didn’t pay at all can make things right.

It’s only the second time in history that the state is in such a forgiving mood.

The plan is expected to collect about $14 million of the $199 million in known tax debts, said Jerome Gerard, the acting head of Maine Revenue Services.

If the state’s first experience with tax amnesty is any indication, $14 million may be a conservative estimate. When Gov. John McKernan offered amnesty for two months in 1990, it collected $29 million in back taxes.

Maine Revenue Services will step up enforcement of the tax laws after the amnesty, giving delinquents all the more reason to pay up during the next three months, Baldacci said in a prepared statement Tuesday.

The program will run from Sept. 1 through Nov. 30, and it will apply to all state taxes.

Under the program, delinquents who pay their taxes in full plus half of the interest charges will be taken off the delinquency list.

The state will waive the balance of the interest charges, plus any fines or penalties that otherwise would apply, to collect its money.

Those who have failed to file state-income tax returns or report some income, neglected to pay the sales tax on out-of-state purchases or overstated deductions on a tax return are also eligible.

People under investigation by Maine Revenue Services may also participate. But those whose cases have been referred to the Attorney General’s Office for prosecution are ineligible.

Although lawmakers embraced the program when they pieced together the budget, reaction has been mixed in and out of the Legislature.

Rep. Joseph Perry, D-Bangor, who serves on the Legislature’s Taxation Committee, said he is not a big fan of tax amnesty because it is “not fair to the person who paid the tax bill” on time.

Sen. Richard Nass, R-Acton, who also serves on the Taxation Committee, agrees with Perry. But Nass said the benefits outweigh the drawbacks because tax amnesty works and is easy to implement.

Applications for the program will be available at city and town halls, public libraries, online or by calling toll-free 1-866-430-3161.

–:

On the net: www.mainetaxamnesty.org

AP-ES-08-27-03 0808EDT

Copy the Story Link