Nevada tax amnesty plan moves forward

Tuesday, Oct. 30, 2001 | 9:58 a.m.

RENO -- A tax amnesty program is nearing approval that would allow thousands of Nevada businesses to pay delinquent taxes without being hit with penalties and interest.

David Pursell, executive director of the Nevada Taxation Department, said Monday he could have the program running by the first of the year and he recommended the amnesty period extend for six months.

The state could collect millions of dollars from businesses that haven't paid the business tax, the sales-and-use tax or other levies.

Business organizations are supporting the forgiveness plan, partly out of self preservation. They fear the next Legislature may target business for new taxes. They want to make sure everybody is coming up with their share now so the revenue required in new taxes will not be as much.

Kami Dempsey, representing the 6,800-member Las Vegas Chamber of Commerce, told the Nevada Tax Commission meeting that "the Legislature is talking new taxes. It is important to collect what is owed to the state."

Carole Vilardo, executive director for the Nevada Taxpayers Association, said the 2003 Legislature is "going to be a tough session." The amnesty program, she said, "is a good prelude to getting all the revenue possible under the existing system."

The tax commission, meeting in Reno, withheld final approval of a forgiveness regulation until it is cleared by the Legislative Counsel Bureau.

But Commission Chairman Barbara Smith-Campbell said, "Everybody wants to move forward on this." She said, however, that she did not know whether the state could gear up to start the program by Jan. 1.

Vilardo said a tax amnesty program in 1993 collected $2 million from 1,800 Nevada businesses and that involved only the use tax. There was no estimate how much may be in arrears now.

Also Monday, the commission agreed to write off $7.3 million owed in delinquent taxes, penalties and interest. These debts extend back an average of 12 years and collection is felt to be impossible or impracticable.

Deputy Taxation Director Dino DiCianno said these 540 accounts range from $1.50 to $1 million. And 72.8 percent of the $7.3 million has been involved in bankruptcy filings, which the commission could not collect.

DiCianno said the write offs amount to less than 0.24 percent of the total taxes collected, which amount to $3.1 billion.

The Tax Commission also adopted a regulation giving the department the authority to contract with a private debt collection agency to go after delinquent accounts.