Comptroller William Donald Schaefer kicked off the state's first tax amnesty program in 14 years, laying out a carrot-and-stick approach yesterday that will give tax scofflaws 60 days to pay up or face harsher consequences after Oct. 31.
"After this amnesty program, we're going to go after you," Schaefer said at a news conference in Annapolis. "We are really going to go after you until you pay."
The General Assembly passed legislation in April authorizing the tax amnesty program.
Legislative analysts estimated that $70 million could be collected. When asked whether that figure was realistic, Schaefer said he thought it was high, but he did not give another estimate.
The state is targeting five categories: personal income taxes, corporate income taxes, employer withholding taxes, sales and use taxes, and admissions and amusement taxes.
Tax liabilities covered under the amnesty program are for periods before Dec. 31, 2000.
Money collected will be disbursed in the following order, under the legislation:
$2 million to fund the amnesty program and hire additional compliance and enforcement personnel.
$30 million to the state's General Fund.
$8 million for public education grants to several counties and Baltimore.
$10 million to the Volunteer Fire Company Assistance Fund.
Any remainder would go into a tax amnesty reserve fund, which could be tapped only through an act of the General Assembly.
Maryland has about $260 million in outstanding taxes in the categories in which it is offering amnesty, said Linda L. Tanton, director of the comptroller's compliance division.
That figure doesn't include "unknowns" - people or corporations that haven't reported, she said.
Tanton said that about half of the money collected will probably come from people or businesses that have reported but not settled their tax liability.
The rest will come from people or businesses that haven't reported, but will come forward to take advantage of the amnesty.
The 60-day period beginning Saturday gives people and businesses a chance to settle their tax liabilities, plus interest owed, without civil or criminal penalties.
Exceptions are previously assessed fraud penalties, pending criminal charges or criminal charges under investigation by the comptroller's office.
After Oct. 31, when the amnesty period ends, state officials said they will pursue aggressive enforcement measures that could result in civil and criminal penalties.
