It’s not going to solve our problems, but at least both the state and local governments are thinking outside the box for a change. Especially since all these vanity taxes have gone absolutely nowhere. Both the state and city governments have resorted to tax-amnesty vacations, in which residents can pay their back taxes for a certain period of time with fewer penalties than usual. Because shame just hasn't worked.
At the state level, Rendell hopes to bring in “as much as $190 million” of the “more than $2.1 billion” his administration says the state is owed, allowing residents the chance to pay their back taxes to Harrisburg without any penalty and only half the interest. Although, when it comes to the anti-tax/New World Order folk who think taxes are global slavery or something tyrannical for tracking citizens and then putting them in death camps, Rendell may have already opened his mouth too soon when he said of the 54-day state program: “Our message is ‘Find us before we find you.’” Full disclosure: We're creeped out by Rendell, too.
On May 3rd, Philly is starting its own lubed up tax takeaway. Those who owe back taxes to the Philadelphia government will be able to pay them back with a 50 percent interest reduction and avoid possible litigation and “other consequences,” according to the program’s website.
The idea for tax deadbeats, delinquents, bunglers, etc., was first concocted in late 2009 – quietly. Revenue Commissioner Keith Richardson told the Inquirer of the plan, begrudgingly, knowing a tax amnesty announcement would have accountants advising their clients to wait until the spring to clear their checking accounts with the money their government steals from them.
The city amnesty program lasts 45 days and officials think they’ll bring in about $25 million to $30 million, a small portion of the hundreds of millions owed to the city and school district. But hey, it’s a start, and Richardson thinks maybe if some businesses and individuals become compliant, it may just catch on. He told KYW, “A lot may come in and say 'We want to get compliant and be on your tax roles.’” Back in 1986, the last time the city announced tax amnesty, $25 million was brought in, which is four times the amount the city expected.
The Philadelphia tax-amnesty program is a chance for those of you who owe the city money to make good on your debt and have half the accrued interest and all penalties forgiven.
Percentage paid at closing varies by state Bernice Ross Inman News DEAR BERNICE: Do I have to pay 2008 or 2009 taxes in escrow? What things should I be considering before going ahead? Please point me in the right direction. I really appreciate your help. --Frank P. DEAR FRANK: I assume that you're asking about property taxes, but city, state and federal taxes can also be issues that you must address before you close your transaction. The amount you will have to pay in property taxes is contingent upon the time of year that you close. If you are putting less than 20 percent down, your lender may require you to pay one-twelfth of your property taxes each month as part of your mortgage payment. These monies are deposited on your behalf into an impound account. At tax time, the lender pays your property taxes. As part of your closing costs, the lender will collect several months of taxes to set up the impound account. The rates and ways in which taxes are assessed vary tremendously. Various taxing entities such as cities or school districts have the right to levy taxes against...
Home Sale Hindsight Tara-Nicholle Nelson Inman News Q: I recently got into contract to buy a foreclosed home. I put $35,000 down, and the closing is in a couple of days. The first day I hired my title attorney I mentioned to her that I wanted my mother to be on the deed in order to get the taxes reduced. Now, the lawyer is telling me that I have to wait until after the closing, do a new title search under my Mom's name, and pay the attorney again to include my Mom on the deed. I feel like it's too late to stop everything now -- what did I do wrong? A: It used to be the case that you couldn't put a co-owner who was not also a co-borrower on title during the course of a purchase transaction. As an outgrowth of the foreclosure crisis, however, most lenders now recognize that many buyers/borrowers would simply put their parent or spouse on title after closing, which caused the lenders lots of problems when they wanted to foreclose on properties co-owned by a borrower and a nonborrower. As a result, many lenders will...
KYW 1060 reports Mayor Nutter has frozen controversial property tax reassessments by the BRT, until a fairer appraisal system can be developed. "The mayor says the scope and depth of the work may take a year or two, to make sure the system accurately assesses properties at actual value: "The moratorium will continue in place until we have developed and fully tested a fair mass-appraisal system." The BRT has been under severe criticism for years for using inaccurate data or arbitrary decisions that resulted in faulty assessments. But, he adds, about 18,000 city properties just received reassessment notices this past fall and are not covered by the moratorium."
KYW 1060 reports a one-cent tax on sugary drinks will be part of Mayor Nutter's next budget. "Mayor Nutter's budget experts briefed city council members behind closed doors on Wednesday on the city's ever-worsening cash crisis. Council president Anna Verna emerged after the session and shook her head at the possibility of new tax increases: "Oh don't say tax increases please, we don't want to go through that again." But Verna confirmed a tax on sugared drinks raised by the administration at the meeting: "I heard about it today, and I think it’s a penny an ounce, or some such thing." Other council members confirm that the concept of a soda tax was brought up at the briefing. Councilman Darrell Clarke says Philadelphia is not alone in looking at this: "Apparently in other municipalities and states there has been this whole proposal to impose a fee on sugars, things of that nature." The Mayor's Budget Chief Rob Dubow would neither confirm nor deny that a soda tax is being considered."
Surprise! It's a tax on tobacco.