S0554

	2019 -- S 0554
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	LC001070
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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: Senators Pearson, Seveney, DiPalma, Conley, and Picard
	Date Introduced: March 14, 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 the tax administrator shall compute the rate of interest to be in effect
10	for that calendar year by adding two percent (2%) to the prime rate, which was in effect on
11	October 1 of the preceding year. In no event shall the rate of interest exceed twenty-one percent
12	(21%) per annum nor be less than eighteen percent (18%) per annum.
13	(c) "Prime rate" as used in subsection (b) of this section means the predominant prime
14	rate quoted by commercial banks to large businesses as determined by the board of governors of
15	the Federal Reserve System.
16	SECTION 2. This act shall take effect upon passage.
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	LC001070
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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 eliminate the requirement that the rate of interest could not be less than
2	eighteen percent (18%) per annum for any delinquent state tax payment.
3	This act would take effect upon passage.
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	LC001070
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	LC001070 - Page 2 of 2