The New York State Department of Taxation and Finance Nov. 18 began a tax-amnesty program expected to collect $175 million in delinquent and disputed state taxes. The program will run until Jan. 31, 2003.

The amnesty, authorized as part of the state's 2002-2003 budget, covers nearly all state tax liabilities from before 2001 and offers a waiver of all civil penalties and 2 percent of applicable interest rates, as well as immunity from prosecution for prior understatements or failures to file.

The program will apply to most state taxes, including personal income tax, withholding tax, corporation and franchise taxes and sales and use taxes.

Individuals or businesses with tax liabilities who are under criminal investigation or pending criminal litigation are not eligible for amnesty. Most businesses with more than 500 employees are also not eligible for the program.

In addition, taxpayers who took advantage of prior tax amnesties are not eligible for the same taxes.

Following the amnesty's expiration, the state will increase interest rates on tax delinquencies an additional 2 percent.