2022 -- S 2263 SUBSTITUTE A | |
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LC004628/SUB A | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2022 | |
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A N A C T | |
RELATING TO TAXATION -- STATE TAX OFFICIALS | |
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Introduced By: Senator Roger Picard | |
Date Introduced: February 11, 2022 | |
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 October |
11 | 1 of the preceding year, except:. |
12 | (1) Before January 1, 2023, in In no event shall the rate of interest exceed twenty-one |
13 | percent (21%) per annum nor be less than eighteen percent (18%) per annum. |
14 | (2) On and after January 1, 2023, in no event shall the rate of interest exceed twenty-one |
15 | percent (21%) per annum nor be less than twelve percent (12%) per annum except for trust fund |
16 | taxes as established by §§ 44-19-35 and 44-30-76, in no event shall the rate of interest exceed |
17 | twenty-one percent (21%) per annum nor be less than eighteen percent (18%) per annum. |
18 | (c) "Prime rate" as used in subsection (b) of this section means the predominant prime rate |
19 | quoted by commercial banks to large businesses as determined by the board of governors of the |
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1 | Federal Reserve System. |
2 | (d) Notwithstanding any provisions of the general laws to the contrary, the tax |
3 | administrator shall waive interest and penalty on the taxable portion of each Paycheck Protection |
4 | Program loan taxed pursuant to §§ 44-11-11(a)(1)(iv), 44-14-11, and 44-30-12(b)(8) and forgiven |
5 | during tax year 2020 provided that the tax on that portion is paid in full on or before March 31, |
6 | 2022. The tax administrator shall make available suitable forms with instructions for making tax |
7 | payments on the taxable portion of such forgiven Paycheck Protection Program loans. |
8 | SECTION 2. This act shall take effect upon passage. |
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LC004628/SUB A | |
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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 change the per annum range of the rate of interest for underpayments of |
2 | taxes. It would provide different ranges of rates for the periods before January 1, 2023, and for on |
3 | and after January 1, 2023, and also for certain trust fund taxes. |
4 | This act would take effect upon passage. |
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