FOR  IMMEDIATE  RELEASE
Office of the Governor

September 6, 2002
Contact: Alex Rose, Kentucky Revenue Cabinet – 502-564-9544
               Terri Giltner, Office of the Governor – 502-564-2611 

Kentucky Tax Amnesty Program Mid-Term Grade is A+
Almost $6 million collected by midway point.
(County by county numbers can be found on Governor Patton’s web site at http://gov.state.ky.us/) 

FRANKFORT, KY  (September 6, 2002)---At the midpoint of Kentucky’s Tax Amnesty campaign, $5,919,037.22 has been collected.  That represents 4,320 applications filed in August, the first month of the 61-day program which ends September 30.

The almost $6 million collected in August represents 30% of the program’s goal of $20 million in 2002.  “The word is out that it’s time to get right with the government.  To have achieved 30% of our goal at the halfway mark of the program is very encouraging,” said Dana Mayton, Secretary of the Revenue Cabinet.  “During similar state amnesty programs, including Kentucky’s 1988 program, most businesses and individuals have traditionally waited to file until the last week,” said Mayton.  “In 1988, almost 82% was paid during the final week of the amnesty period.  More than 65% of the applications were filed in the last week.”

“We attribute the early success of the Amnesty program to recognition by individuals and businesses that participating in amnesty is good citizenship and is a good deal,” said Mayton.  “You can pay back taxes with no penalties, no fees, no interest and no questions about why you didn’t pay.  All information submitted is strictly confidential,” Mayton said.  Taxpayers do have to pay 100% of the tax.  “Amnesty is not a pardon.  It’s a second chance,” Mayton said. 

At the midpoint in the 2002 program, about half of the applications have come from individuals and about half from businesses. However, 85% of receipts have come from businesses while only 15% from individuals.  “This is comparable to the 1988 campaign,” said Mayton.       

Certain property taxes, eligible for amnesty for the first time, have brought in $925,000 of which $342,000 will be returned to local taxing jurisdictions including school districts.  “Property taxes have been a pleasant surprise and we are particularly pleased to be sending some badly needed funding back to the locals,” said Secretary Mayton.  

Applications and payments by county and state are available in Exhibit A and are categorized by individuals and businesses.

Sales and use tax is the leader in receipts with $2,748,000, followed by individual income tax with $840,000.  See Exhibit B.

At the midway point, applications have been received from 119 of Kentucky’s 120 counties, forty-two states and the District of Columbia.  Also, 10 applications have been received from Canada.

The Tax Amnesty website, www.amnesty.ky.gov, has received more than 66,000 hits.  Amnesty call volume to the campaign’s toll-free 1-877-ONLY-TAX number has exceeded 11,000.  “The tremendous interest in the program demonstrates that taxpayers want a fresh start.  They want to pay their fair share.  Amnesty provides a way for those behind in their taxes to face their responsibilities instead of the consequences,” said Mayton.  “After amnesty ends on September 30, the General Assembly has instructed Revenue to be even tougher in our delinquent tax collection efforts,” Mayton said.

“Tax Amnesty is a rare opportunity for those who live, work, or do business in Kentucky to pay any back state taxes they owe without penalties, interest or prosecution.  It’s time to get right with the government,” explained Governor Paul Patton during the campaign launch on August 1st.

Tax Amnesty includes all state taxes directly administered by the Kentucky Revenue Cabinet.  Property taxes levied on real estate, motor vehicles and motor boats payable to local officials are not included.  The program applies to back taxes incurred on or after December 1, 1987 and prior to December 1, 2001.  Virtually all taxpayers are eligible to participate in the program.

For more information, visit www.amnesty.ky.gov or call the Amnesty toll-free number 1-877-ONLY-TAX (1-877-665-9829).  Amnesty applications are available at the offices of Property Valuation Administrators and at Kentucky Revenue Cabinet Taxpayer Service Centers throughout the state.  The applications can also be downloaded from the amnesty website. 

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Exhibit A

Exhibit B