After taxpayers were able to pay their past-due taxes at no additional charge from overdue penalties and fees earlier this year, the Indiana tax amnesty collected $100 million surpassing its goal for 2015. The goal was set at 90 million, money which was to be used in order to fund several programs proposed and signed in May this year in the House Enrolled Act 1001 by Governor Mike Pence.
The tax amnesty program was programmed to last for eight weeks, a period in which taxpayers could take advantage of not paying any penalties for past-due tax related payments. This move was extremely profitable for the Department of Revenue of the state of Indiana, with most of the residing citizens adhering to the program.
The money raised will be used in different amounts by both the Economic Development Corporation as well as the Department of Transportation. For the EDC, almost 85% of the gathered funds will be allocated to the program named the Indiana Regional States Initiative, which plans to bring improvements to the several communities by funding the plans proposed by the communities themselves. The winners of this initiative will be elected next week, along with the choosing and unveiling of their proposed plans.
The Department of Transportation will be receiving 6 million dollars in order to fund and complete the Hoosiers State Passenger Rail, with the other added funds received through the tax amnesty program to be deposited directly into the general fund of the state of Indiana. These added benefits will be used in the future in order to help other plans which will more than likely be proposed in the coming weeks and months.
With the success gathered by this program, more states will probably do the same as Indiana. The fact of the matter is if they wait for tax-payers to pay their penalties and fees acquired by missing their due date, they might not get the money required at this point. But if they let go of the fees created by not paying taxes when they were supposed to be paid, a lot more people will be incentivized to help the state through tax payments, especially if they have hefty penalties associated with them.
The private loan collecting firm Navient has been denied eligibility by the Indiana Department of Revenue due to their failure to reach 55 million dollars in tax collections, but the company claims their goal will be reached in the coming weeks.
Even if the Indiana tax amnesty collected $100 million surpassing its goal for 2015, an added 22 million dollars in taxes are expected to be added to this large sum through payment plans used by taxpayers, with the collection lasting until June 15.