2014 -- H 7743

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LC004699

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

     RELATING TO TAXATION - INTEREST ON DELINQUENT PAYMENTS

     

     Introduced By: Representatives Giarrusso, Serpa, Williams, Hull, and Bennett

     Date Introduced: February 27, 2014

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-1-7 of the General Laws in Chapter 44-1 entitled "State Tax

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Officials" is hereby amended to read as follows:

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     44-1-7. Interest on delinquent payments. [Effective until August 15, 2010.] -- (a)

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Whenever the full amount of any state tax or any portion or deficiency, as finally determined by

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the tax administrator, or any surcharge that is required to be remitted to the tax division pursuant

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to section 39-21.1-14, has not been paid on the date when it is due and payable, whether the time

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has been extended or not, there shall be added as part of the tax or portion or deficiency, or

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surcharge as referenced in this provision, interest at the rate as determined in accordance with

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subsection (b) of this section, notwithstanding any general or specific statute to the contrary;

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provided, however, no interest or penalties shall be added to any deficiency resulting from

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imputed income from domestic partner healthcare benefits for tax years 2002 through 2004

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provided the taxpayer files amended returns by August 15, 2006.

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      (b) Each January 1 the tax administrator shall compute the rate of interest to be in effect

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for that calendar year by adding two percent (2%) to the prime rate, which was in effect on

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October 1 of the preceding year. In no event shall the rate of interest exceed twenty-one percent

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(21%) per annum nor be less than eighteen percent (18%) per annum.

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      (c) "Prime rate" as used in subsection (b) of this section means the predominant prime

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rate quoted by commercial banks to large businesses as determined by the board of governors of

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the Federal Reserve System.

 

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     44-1-7. Interest on delinquent payments. [Effective August 15, 2010.] -- (a) Whenever

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the full amount of any state tax or any portion or deficiency, as finally determined by the tax

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administrator, has not been paid on the date when it is due and payable, whether the time has been

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extended or not, there shall be added as part of the tax or portion or deficiency interest at the rate

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as determined in accordance with subsection (b) of this section, notwithstanding any general or

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specific statute to the contrary.

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      (b) Each January 1 the tax administrator shall compute the rate of interest to be in effect

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for that calendar year by adding two percent (2%) to the prime rate, which was in effect on

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October 1 of the preceding year. In no event shall the rate of interest exceed twenty-one percent

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(21%) per annum nor be less than eighteen four percent (18%) (4%) per annum.

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      (c) "Prime rate" as used in subsection (b) of this section means the predominant prime

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rate quoted by commercial banks to large businesses as determined by the board of governors of

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the Federal Reserve System.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

     RELATING TO TAXATION - INTEREST ON DELINQUENT PAYMENTS

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     This act would lower the minimum interest rate to be charged on delinquent tax payments

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from eighteen percent (18%) to four percent (4%).

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     This act would take effect upon passage.

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