Cash-strapped New Jersey is offering tax delinquents a way to avoid penalties and some interest if they pay up by mid-June.

Beginning today, the state is allowing people who owe taxes for returns due on or after Jan. 1, 2002, and before Feb. 1, 2009, to settle their bills, using a waiver of penalties and half of the interest as enticements.The amnesty program as part of Gov. Jon Corzine’s attempt to balance a state budget that’s been rocked by revenue losses tied to the weak economy.

Most who owe taxes are eligible to participate in the amnesty program, but those under criminal investigation for a state tax matter are not.

“We have noticed that many individuals and businesses that are usually compliant have fallen behind in their tax obligations,” said Mark Wintermute, special assistant to the director of the state Division of Taxation. “This is an opportunity for them to catch up and have a fresh start.”

Corzine is hoping to generate at least $100 million from the amnesty program as part of his larger bid to fix the state budget before June 30, the end of the fiscal year. The governor has also cut spending in departments, ordered unpaid furloughs for workers and diverted $4 million from a fund that pays for emergency medical technician training.

The tax amnesty program will run through June 15. After that, the state said it will aggressively collect outstanding taxes, charging an additional 5 percent penalty on top of other penalties and interest.

The state has hired an advertising firm to help publicize the program with billboards, newspaper ads and television commercials. A web site has also been created, www.taxamnesty.nj.gov.

Corzine detailed his amnesty program earlier this year after announcing the state was facing at least a $2 billion gap between its revenue projections and what was actually being collected.

Critics said frequent amnesty programs take away state revenue while rewarding those who don’t pay taxes promptly. But administration officials have defended the proposal, claiming it would not have been offered if the state wasn’t in a budget crisis.

(Source: NJ Star Ledger)