State tax amnesty proceeds swell to $255 million

INDIANAPOLIS | State government got a $57 million shot in the arm Thursday, with Republican Gov. Mitch Daniels announcing that Indiana's tax amnesty proceeds have swelled to $255 million.

Democrats used the news to immediately renew their push to inoculate homeowners against mounting property tax bills. House Minority Leader Patrick Bauer, D-South Bend, said the two-year budget Republicans approved this spring will push $1 billion onto property tax payers.

"I think we should do something to curtail that," Bauer said.

"We had an idea of using amnesty -- at the time it was $200 million -- certainly now that he's raised the estimations we could do that."

The other option is to endorse a House GOP plan to absorb $150 million in local levies that homeowners pay to support child welfare programs. House Republicans say the state can extend that relief without dipping into the amnesty money.

But Daniels says the state can't afford the extra burden, especially after a recent forecast showed revenues falling $74 million below estimates built into the biennial budget. The governor said the amnesty money will be needed to fill that gap.

"Once again, this is one-time money and should be part of our financial recovery plan for the state and not part of any new commitment," Daniels said.

More than 91,000 taxpayers took advantage of the two-month opportunity to settle back taxes without penalty or interest. A month ago, the state estimated that amnesty had brought in $197.7 million.

The final tally of $255 million was nearly four times what lawmakers had estimated. The state will have to subtract at least $13 million it spent to advertise the program and hire a collection agency.

Debtors who did not settle up face double penalties and interest. Delinquent debtors still owe Indiana an estimated $400 million.

Daniels also had some far less grandiose fiscal news to share. State workers recently discovered a $4,300 cache of 23-cent stamps collecting dust and two uncashed checks worth more than $20,000. The checks, from 1999 and 2000, are fines employers owed for violating job-safety regulations.

Daniels also plans to sell 10 solid-wood rocking chairs recently purchased for a state hospital at more than $2,000 apiece.

"We do think this is excessive, and we're thinking about an auction or eBay," Daniels said.

"We're trying to foster an attitude that reminds everyone in state government that some taxpayer worked hard for every dollar that is spent by state government."