Gov. Jim Gibbons has called for a tax amnesty program he says should add a number of businesses to Nevada’s tax system.
Taxation Director Dino Dicianno told the Tax Commission Monday the idea is to forgive interest and penalties for those taxpayers who pay back taxes. He said it would apply to amounts owed for sales and use taxes, the modified business tax and business licensing fees for both existing and formerly unregistered businesses.
Deputy Taxation Director Chris Nielsen said a similar program in 1993 generated $2.8 million in revenue for the state and the 2002 amnesty program brought in more than $7.3 million while adding 249 businesses to the department’s registration list.
Dicianno said there could be up to $100 million out there owed to the state.
“The vast majority is made up of sales and use taxes,” he said.
Nielsen told the commission the proposal they will bring for a vote at the June 2 meeting will outline a three month amnesty program beginning July 1.
In announcing the plan, Gibbons said the amnesty would “entice full payment of outstanding back taxes while encouraging businesses not already registered with the state to do so.”Those new registrations, he said, would provide ongoing revenue to the state.
“The interest and penalties assessed on delinquent taxes can be substantial,” said Gibbons. “I hope businesses delinquent in their taxes recognize the value of this one-time opportunity, especially during difficult economic times.”
Those businesses that ignore the offer will eventually end up paying anyway since the department is now using IRS, the Secretary of State’s office and other resources to track down unregistered businesses in the state.

Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.