2015 -- H 6156

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LC002436

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO TAXATION

     

     Introduced By: Representative John M. Carnevale

     Date Introduced: May 01, 2015

     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 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%) per annum. Effective July 1, 2015, in

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no event shall the rate of interest exceed fifteen percent (15%) per annum, nor be less than ten

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percent (10%) 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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     (d) Persons owing delinquent taxes and obtaining an approved payment agreement with

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the tax administrator or his/her designee prior to December 31, 2015, shall be eligible for a

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reduced rate of interest of five percent (5%) per annum. Any person defaulting on an approved

 

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payment agreement shall not be eligible for a reduced rate of interest under this section.

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     (e) Persons owing delinquent taxes and obtaining an approved payment agreement with

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the tax administrator or his/her designee after December 31, 2015, shall be eligible for a reduced

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rate of interest of seven percent (7%) per annum. Any person defaulting on an approved payment

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agreement shall not be eligible for a reduced rate of interest under this section.

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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

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     This act would reduce the interest rate on delinquent tax payments to between fifteen

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percent (15%) and not less than ten percent (10%) and would provide for a reduced interest rate

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for persons on approved payment plans.

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     This act would take effect upon passage.

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