2016 -- S 2746

========

LC005323

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

____________

A N   A C T

RELATING TO TAXATION - INTEREST RATES

     Introduced By: Senator Ryan W. Pearson

     Date Introduced: March 10, 2016

     Referred To: Senate Finance

     (by request)

It is enacted by the General Assembly as follows:

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

Officials" is hereby amended to read as follows:

     44-1-7. Interest on delinquent payments. -- (a) Whenever the full amount of any state

tax or any portion or deficiency, as finally determined by the tax administrator, has not been paid

on the date when it is due and payable, whether the time has been extended or not, there shall be

added as part of the tax or portion or deficiency interest at the rate as determined in accordance

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

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

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

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

(21%) seven percent (7%) per annum nor be less than eighteen percent (18%) four percent (4%)

per annum.

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

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

the Federal Reserve System.

     SECTION 2. This act shall take effect upon passage.

========

LC005323

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION - INTEREST RATES

***

     This act would reduce the interest rate on delinquent tax payments to between four

percent (4%) and seven percent (7%) instead of eighteen percent (18%) to twenty-one percent

(21%).

     This act would take effect upon passage.

========

LC005323

========

LC005323 - Page 2 of 2