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

     

     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:

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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. -- (a) Whenever the full amount of any state

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

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

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

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

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      (b) Each January 1, and effective as of January 1, 2016, the tax administrator shall

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compute the rate of interest to be in effect for that calendar year by adding two percent (2%) three

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percent (3%) to the prime rate, which was in effect on October 1 of the preceding year. In no

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event shall the rate of interest exceed twenty-one percent (21%) fifteen percent (15%) per annum

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nor be less than eighteen percent (18%) twelve percent (12%) 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 -- STATE TAX OFFICIALS

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     This act would increase the rate of interest on delinquent state tax payments from two

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percent (2%) to three percent (3%) greater than the prime rate, and would also reduce the cap and

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floor on such interest to no greater than fifteen percent (15%) and twelve percent (12%) per

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annum, respectively.

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     This act would take effect upon passage.

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