PROVIDENCE – The Rhode Island Tax Amnesty of 2017 collected a total of $21.2 million in revenue, according to the R.I. Division of Taxation Monday.
The collection beat revenue estimates by 69.8 percent, which was budgeted for $12.5 million. Of the collection, $14.5 million was owed taxes and $6.7 million was owed interest.
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The tax amnesty plan allowed those who paid their tax in full to receive a waiver for late penalties and a 25 percent reduction in interest. The Division of Taxation said the program resulted in a collective $9.2 million in forgiven penalties and interest.
“We are pleased that so many businesses and individuals came forward to take advantage of the many benefits of amnesty,” said Mark A. Furcolo, director of the Department of Revenue in a statement. “For those who paid what they owed, we waived penalties and reduced interest by 25 percent. As a result, these taxpayers were able to get a clean slate, a fresh start,” he said.
The division said it processed 10,461 amnesty applications during the 75-day program that ended on Feb. 15. It received amnesty-related deposits of 27 different tax types and fees.
The majority of tax amnesty collection was personal income tax at $10.5 million. Sales tax revenue accounted for the second-largest cash collection in the amnesty program at $4 million. Corporate revenue and estate tax payments were the third- and fourth-largest collections under the program at $2.9 million and $2.2 million, respectively.
Chris Bergenheim is the PBN web editor.
