Louisiana’s latest tax amnesty program, which waived fees and penalties in order to encourage delinquent taxpayers to settle their debts, didn’t draw in enough to close a $171 million deficit in this year’s state budget.
The amnesty program, which ended Nov. 14, brought in an estimated $169 million, the Louisiana Department of Revenue announced this afternoon. Of that, the revenue department will keep $27 million, and $100 million is already budgeted. Less than $40 million is left to close the budget hole.
Last week the state’s economists announced the shortfall, which is due to falling oil revenues and underperforming tax collections in other sectors. Lawmakers will discuss how to make up the difference at a legislative committee meeting Friday.
Gov. Bobby Jindal’s administration has announced that there will not be a need to cut from the state’s higher education institutions’ budgets, a frequent target as the state has struggled to balance its ledgers mid-year.
Already LDR has collected $136 million in amnesty payments. Another $10 million in payments were sent before the deadline but have not yet been received. The department will collect a projected $23 million through installment payments before May 1, 2015.
One more amnesty program will be held next year, but fees and penalties won’t be waived as generously. According to the rules surrounding the program, the state can’t hold another amnesty until 2025.
