State Senate Approves Tax Amnesty Plan

The New Hampshire state Senate today approved a bill to institute a six-week tax amnesty program that would allow taxpayers to catch up on unpaid taxes without penalty or interest, according to a press statement.

The window would be open from Sept. 1, through Oct. 15, 2015.

The Department of Revenue Administration estimates the tax amnesty program would bring in approximately $15 million in unpaid taxes. SB 34, sponsored by state Sen. Andy Sanborn, R-Bedford, also includes a voluntary disclosure provision, which lets taxpayers disclose a tax liability currently unknown to the DRA.

“New Hampshire has offered struggling taxpayers a chance to get caught up three times in the past,” explained Sanborn. “This gives taxpayers who’ve fallen behind a chance to pay the taxes they owe.”

Gov. Hassan includes the DRA’s tax amnesty plan in her proposed budget, but would spend the money to pay for spending in the current Fiscal Year. SB 34 would allocate the anticipated revenue to one-time expenditures in FY 2016. The first $50,000 would go to DRA to administer and market the program. The DRA would use the next $500,000 to set up a first-ever taxpayer E-File system. Up to $15 million more would go back to cities and towns for local highway and bridge projects.

“We have a responsibility to use one-time revenues on one-time expenses, rather than to prop up programs we won’t be able to afford in the next budget,” Sanborn added. “This bill recognizes that most New Hampshire families and business pay their taxes on time, while giving those who’ve fallen behind a chance to catch up.”