S0123

	2019 -- S 0123
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	LC000775
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	STATE OF RHODE ISLAND
	IN GENERAL ASSEMBLY
	JANUARY SESSION, A.D. 2019
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	A N A C T
	RELATING TO TAXATION -- STATE TAX OFFICIALS

	Introduced By: Senator Roger Picard
	Date Introduced: January 24, 2019
	Referred To: Senate 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.
4	(a) Whenever the full amount of any state tax or any portion or deficiency, as finally
5	determined by the tax administrator, has not been paid on the date when it is due and payable,
6	whether the time has been extended or not, there shall be added as part of the tax or portion or
7	deficiency interest at the rate as determined in accordance with subsection (b) of this section,
8	notwithstanding any general or specific statute to the contrary.
9	(b) Each January 1, and effective as of January 1, 2020, the tax administrator shall
10	compute the rate of interest to be in effect for that calendar year by adding two percent (2%) three
11	percent (3%) to the prime rate, which was in effect on October 1 of the preceding year. In no
12	event shall the rate of interest exceed twenty-one percent (21%) fifteen percent (15%) per annum
13	nor be less than eighteen percent (18%) twelve percent (12%) per annum.
14	(c) "Prime rate" as used in subsection (b) of this section means the predominant prime
15	rate quoted by commercial banks to large businesses as determined by the board of governors of
16	the Federal Reserve System.

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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