Colorado Springs Offers Amnesty to Sales Tax Cheats
June 29, 2009
Tax amnesties pop up now and then at the state level, but Colorado Springs, Colorado is doing a local one:
The City of Colorado Springs (City) has established a Tax amnesty program to run for three months, from May 12, 2009 through August 14, 2009, which will include sales and use taxes paid to the City.
The program provides an opportunity for taxpayers to pay any unreported taxes while avoiding penalties. In addition, interest charges on delinquent taxes will be reduced to 6% per annum or 1/2% per month.
Taxes eligible for amnesty includes City sales, use, lodgers, auto rental, bicycle and movie admission.
Ah yes, they always say it’s a one-time thing. Oklahoma has done its one-time amnesty at least twice (some say three times) since 2002.
Amnesty programs have a downside in that people who’ve dutifully paid their state taxes will feel left out. (Those who have already been caught and are paying back taxes are also ineligible.) Tax cheats may wait for such programs to come around again if a state repeatedly offers amnesty over a several-year period, he said. People will come to expect them.