2016 -- H 7376 | |
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LC004257 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2016 | |
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A N A C T | |
RELATING TO TAXATION -- STATE TAX OFFICIALS | |
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Introduced By: Representatives Ruggiero, Shekarchi, Gallison, Trillo, and Marshall | |
Date Introduced: January 28, 2016 | |
Referred To: House Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 44-1-7 of the General Laws in Chapter 44-1 entitled "State Tax |
2 | Officials" is hereby amended to read as follows: |
3 | 44-1-7. Interest on delinquent payments. -- (a) Whenever the full amount of any state |
4 | tax or any portion or deficiency, as finally determined by the tax administrator, has not been paid |
5 | on the date when it is due and payable, whether the time has been extended or not, there shall be |
6 | added as part of the tax or portion or deficiency interest at the rate as determined in accordance |
7 | with subsection (b) of this section, notwithstanding any general or specific statute to the contrary. |
8 | (b) Each January 1, and effective as of January 1, 2016, the tax administrator shall |
9 | compute the rate of interest to be in effect for that calendar year by adding two percent (2%) three |
10 | percent (3%) to the prime rate, which was in effect on October 1 of the preceding year. In no |
11 | event shall the rate of interest exceed twenty-one percent (21%) fifteen percent (15%) per annum |
12 | nor be less than eighteen percent (18%) twelve percent (12%) per annum. |
13 | (c) "Prime rate" as used in subsection (b) of this section means the predominant prime |
14 | rate quoted by commercial banks to large businesses as determined by the board of governors of |
15 | the Federal Reserve System. |
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1 | 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 -- STATE TAX OFFICIALS | |
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1 | This act would increase the rate of interest on delinquent state tax payments from two |
2 | percent (2%) to three percent (3%) greater than the prime rate, and would also reduce the cap and |
3 | floor on such interest to no greater than fifteen percent (15%) and twelve percent (12%) per |
4 | annum, respectively. |
5 | This act would take effect upon passage. |
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