The news of devastating budget shortfall that hit the state government has prompted Dan Dorman (R-Albert Lea) to introduce a tax-amnesty bill for the next house session in January.

Wednesday, December 12, 2001

The news of devastating budget shortfall that hit the state government has prompted Dan Dorman (R-Albert Lea) to introduce a tax-amnesty bill for the next house session in January.

The state announced the projected budget deficit of $1.95 billion Tuesday last week.

Dorman’s proposal aims to accelerate tax collection from defaulters by providing a 120-day exemption period for a portion of overdue interest and penalties.

&uot;When you are pinched for cash like Minnesota is, you have to begin hunting for the nickels and dimes hidden under the couch cushions,&uot; Dorman said.

There is about $250 million in overdue and uncollected taxes not counting accrued penalties and interest, according to Dorman.

&uot;Some of that would be unrecoverable, but it would be in the best interest of the state to try to collect what it can,&uot; said Dorman.

The bill is modeled after a similar program in Ohio. Many other states, including Minnesota in 1984, implemented the tax amnesty program and had a positive impact on the state financial health, according to Dorman.