 A report released Monday by the Commission on Government Forecasting
and Accountability shows a net gain of $331.9 million to the state's
general funds as of Dec. 1. Gov. Pat Quinn's budget office had
estimated and was counting on the state garnering $250 million from
the program that allowed retailers and corporate and personal income
tax scofflaws to pay up without penalty.As the Legislature's
economic forecasting arm, the commission had predicted the state
would collect $100 million from the program running Oct. 1-Nov. 15
for back taxes owed between June 30, 2002, and July 1, 2009.
However, $331.9 million pales when compared with a budget deficit
estimated at $13 billion to $15 billion for next year. And the
author of the report cautions, the money would have been collected
eventually, as regular Illinois Department of Revenue audits would
have hunted down the deadbeats.
"It must be stressed that the vast majority of these revenues are
not new revenues but rather an acceleration of tax revenue that
would have ultimately have been collected later in FY 2011 or in
subsequent fiscal years," wrote Eric Noggle, an analyst with the
commission.
The amnesty program so far has collected a total of $546.7
million. However, $145.5 million is earmarked for six specific
funds, and $69.3 million is funneled toward income tax refunds,
Noggle said. That leaves $331.9 million for the general funds, which
generally go toward education costs and the state's checking
account. The earlier amnesty program estimates of $100 million and
$250 million were for the state's general funds, he said.
Officials with the state Department of Revenue declined to
comment on the numbers in the report, saying they're still
processing payments.
"We haven't announced final results because they aren't final
yet," said department spokeswoman Sue Hofer.
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Hofer said the department is also focused on determining how much
of the payments will be returned to local governments. If a retailer
is paying back sales tax, for example, only 5 percent of that amount
goes to the state, while any other local share would go back to the
original taxing body, she said.
The tax amnesty program is part of the state's fiscal 2011
budget, with the $250 million estimate by the governor's office
written into the final budget.
However, the extra boon now will also mean less money later. The
commission reports that during a tax amnesty program in fiscal 2004
that collected about $317 million in net revenues for the state, the
Department of Revenue estimated that about one-third of the payments
would have been collected later in the year, one-third in fiscal
2005 and one-third in fiscal 2006 and later.
"It is likely that a similar scenario will follow suit for the
fiscal 2011 amnesty program," wrote Noggle.
[Illinois
Statehouse News; By MARY MASSINGALE]
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