The council's Finance Committee approved the measure Wednesday. Final approval of the plan could come next week.
The program would apply to all delinquent real estate and school taxes. Under the plan, businesses and residents would pay off their taxes and half the interest they owe. The city would forgive the rest of the interest and penalties.
A tight budget crunch has prompted the city to increase emphasis on the collection of unpaid bills.
City Controller Alan Butkovitz says the city is also owed more than $100 million in delinquent water bills. He is urging the Water Revenue Bureau to step up collection efforts.