Friday, December 24, 2010
By jeanne starmack
campbell
The city’s income-tax-amnesty program, which began in August and ended Nov. 15, was as successful as projected, said the city’s finance director.
Finance Director Sherman Miles said the program, which forgave interest and penalties for people who filed their returns but did not pay taxes, brought in just under the projected $45,000. Most of the money came in after Nov. 1, as the program was winding down, he said.
A subpoena program, which targeted nonfilers, ran Aug. 18 to 20, and it netted more than $20,000, or $12,000 more than projected.
“That $65,000 is going to help the city end the year with a positive cash balance,” Miles said. “Without it, we might have ended in a deficit situation.”
Tax revenues have lagged all year behind where they should be. As of October’s collections, revenues were down $161,000. Miles said they picked up again and the year should finish down about $108,000.
Miles said the economy has a lot to do with why tax revenues are down. People have lost income, so there’s nothing to tax.
Miles said the city has had tax-amnesty programs in the past but not every year.
“I think it’s a good idea to try to have it every year,” he said.