City quietly makes plans to offer tax amnesty

Philadelphia - in an effort to get some of the nearly $1 billion owed by tax deadbeats - will likely offer an amnesty next spring, Revenue Commissioner Keith Richardson said today.

The city has tried to keep details of the planned amnesty quiet, knowing that it will discourage taxpayers from settling their accounts before the amnesty. Richardson acknowledged that news of the program is already drying up payment of delinquent bills as accountants advise their clients to wait for the amnesty.

"I don't want us ever to ever have to do this again," Richardson said.

Richardson said the amnesty, if approved by City Council, is timed to come after tax season, when tax professionals have time to deal with it for their clients, and also to coincide with a state tax-amnesty program.

It would begin May 3 and last 45 days. Taxpayers would be forgiven half of their interest and all the penalty on their back taxes.

Council still must approve authorizing the program and allocating the $12.6 million needed to advertise and administer the plan by an outside agency.

Council's Appropriations Committee recommended approval of the expenditure today, and will have a hearing Wednesday on authorizing the amnesty, with final approval as early as Dec. 17.

Richardson said a request for proposals for companies to run the program would go out soon after the law was passed.

The city and school district are owed $999 million, Richardson said, though less than half of that is actual principal. The city hopes to come away with about $40 million, minus the cost which put the net result at $25 million to $30 million.

Taxes covered by the amnesty include property, wage, business privilege, school district and others. Delinquent water charges are not eligible.

The city has taken this route before.

In 1986, a tax amnesty brought in $25 million, nearly four times what was expected, according to City Controller Alan Butkovitz.