2018 -- S 2525

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LC003825

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO TAXATION -- STATE TAX OFFICIALS

     

     Introduced By: Senators Raptakis, Ciccone, Cote, Sheehan, and Picard

     Date Introduced: March 01, 2018

     Referred To: Senate 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.

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     (a) Whenever the full amount of any state tax or any portion or deficiency, as finally

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determined by the tax administrator, has not been paid on the date when it is due and payable,

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

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deficiency interest at the rate as determined in accordance with subsection (b) of this section,

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notwithstanding any general or 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 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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LC003825

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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 place a maximum twelve percent (12%) per annum interest rate cap on

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delinquent tax payments for business corporation, sales and use, estate and personal income taxes.

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     This act would take effect upon passage.

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LC003825

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