Tax amnesty nets $18.4 million

By John J. Sanko, Rocky Mountain News
July 15, 2003

Tardy taxpayers took advantage of Colorado's month long tax-amnesty program in June to ante up more than $18.4 million, State Revenue Director Michael Cooke said Monday.

That was good news for state lawmakers, who were told the program might add only $5 million to the state's dwindling coffers.

Legislators approved the program as one of several steps to raise money as they worked earlier this year to cut nearly $1 billion in spending from last year's budget and the same from that for the current fiscal year.

"You never like to hear about people skipping their taxes, because it's a responsibility of citizenship," said Senate President John Andrews, R-Centennial. "But I'm glad we've been able to provide this much relief to a very stressed state budget by giving those folks an opportunity to come in late and clean up their record."

The Colorado Public Expenditure Council, in looking at a variety of other tax-amnesty programs, including one in Colorado in 1985, predicted the take might be anywhere from a low of just under $9 million to a high of more than $145 million. Other officials said $5 million might be the best the state could hope for.

This year's program, which ran from June 1 through June 30, allowed taxpayers to pay back taxes penalty-free at only half the normal interest rate. But it did not apply to taxpayers who already had been warned they owed taxes.

There was one "major" company that paid more than $1 million in back taxes, but it was not identified.

The slogan for the campaign was "Pay the Tax or Pay the Max."

"Under the terms of the amnesty program, these taxpayers will avoid criminal charges," Cooke said. "They've made things right with their tax accounts.

"Some of these taxpayers are now on our tax rolls for the first time, and they must continue their civic responsibility to pay their taxes."

John Vecchiarelli, senior director of taxation, said the state will now move forward to develop new ways of tracking potential tax evasion.

One new method that will be coming on board involves posting the names of the biggest tax scofflaws - those who owe the state $20,000 or more - on a "Cyber Hall of Shame." That Web site is not expected to be up and running until early next year, however.

"I believe this is the start of renewed programs to better educate the public about their tax responsibilities to pay their fair share," Vecchiarelli said.

Eighteen employees were added to an expanded tax-enforcement staff, which began work July 1 locating and assessing businesses and individuals with delinquent taxes.