2017 -- H 5287

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LC000498

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO TAXATION - PERSONAL INCOME TAX - PART 44-30-81 PROCEDURE

AND ADMINISTRATION

     

     Introduced By: Representatives Roberts, Price, Ucci, Lima, and Quattrocchi

     Date Introduced: January 27, 2017

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-30-88 of the General Laws in Chapter 44-30 entitled "Personal

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Income Tax" is hereby amended to read as follows:

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     44-30-88. Interest on overpayment.

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     (a) General. Interest shall be allowed and paid as follows at the annual rate provided by §

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44-1-7 upon any overpayment in respect of Rhode Island personal income tax:

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     (1) From the date of the overpayment to a date, to be determined by the tax administrator,

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preceding the date of a refund check by not more than thirty (30) days, whether or not the refund

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check is accepted by the taxpayer after tender of the check to the taxpayer. The acceptance of the

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check shall be without prejudice to any right of the taxpayer to claim any additional overpayment

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and interest thereon;

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     (2) From the date of the overpayment to the due date of an amount against which a credit

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is taken. No interest shall be allowed or paid if the amount is less than two dollars ($2.00).

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     (b) Date of payment. The provisions of § 44-30-87(h) and (i) applicable in determining

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the date of payment of tax for purposes of determining the period of limitation on credit or

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refund, shall be applicable in determining the date of payment for purposes of this section.

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     (c) Income tax refund within ninety (90) days of due date of tax If any overpayment of

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Rhode Island personal income tax is refunded within ninety (90) days after the last prescribed

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date, or permitted by extension of time, for filing the return of the tax, or within ninety (90) days

 

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after the return is in fact filed, no interest is allowed under this section on the overpayment.

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     (d) Refund of tax caused by carryback of loss. For purposes of this section, if any

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overpayment of Rhode Island personal income tax results from a carryback of a net operating

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loss, the overpayment is deemed not to have been made prior to the close of the taxable year in

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which such net operating loss arises.

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     (e) Cross reference. See § 44-30-87(c), terminating interest after failure to file notice of

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federal change under § 44-30-59.

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     (f) For the tax year 2016, any overpayment of Rhode Island personal income tax not

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refunded by June 30, 2017 shall be paid to the taxpayer with interest assessed at a rate of twelve

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percent (12%) per annum compounded daily for each day the refund of the overpayment is

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delayed beyond June 30, 2017.

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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 - PERSONAL INCOME TAX - PART 44-30-81 PROCEDURE

AND ADMINISTRATION

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     This act would provide that any 2016 tax overpayment would be refunded with interest

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calculated at twelve percent (12%) compounded daily if not received by June 30, 2017.

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     This act would take effect upon passage.

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