State offers deal to those behind on taxes

TRENTON AP) — New Jersey officials are giving a break to people who have unpaid tax liabilities as the state struggles to meet revenue projections.

But the state treasury department says the deal, announced Wednesday, is not an amnesty.

Gov. Chris Christie has previously said he opposes using an amnesty program to get a shot of revenue.

The state announced earlier this year that it expected to fall $1.3 billion short of its revenue target for the fiscal year that ended June 30. A bond document last week found that the revenue reported so far was $275 million below even that mark. The state also warned that it could struggle to meet its projections this year largely because of a wave of casino closings. Last week, the bond-rating agency Standard & Poor's downgraded the state's debt, citing structurally unsound budgets and delayed pension fund contributions.

The initiative runs through Nov. 17. Taxpayers who participate agree to pay their full tax bill and interest and can ask for penalties to be reduced or eliminated.

Like with an amnesty program, the state and the taxpayer would agree that the matter is closed and not to pursue any further legal action over the bills.

Treasury spokesman Joseph Perone does not have an estimate for how much it might raise. He said that the initiative is being offered as a convenience to taxpayers. Perone said the new effort formalizes arrangements that have previously been available to taxpayers.

People with outstanding liabilities for the tax years 2005 through 2013 are eligible.

It's the first initiative of its kind since Christie became governor in 2010.

Amid the Great Recession in 2009 when Jon Corzine was governor, the state had an amnesty program that brought in $725 million — more than three times what was expected.

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