2016 -- H 8338

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LC006185

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO TAXATION - PERSONAL INCOME TAX - PART 44-30-81 PROCEDURE

AND ADMINISTRATION

     Introduced By: Representatives Costa, Roberts, Nardolillo, and Lancia

     Date Introduced: June 14, 2016

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-30-88 of the General Laws in Chapter 44-30 entitled "Personal

Income Tax" is hereby amended to read as follows:

     44-30-88. Interest on overpayment. -- (a) General. - Interest shall be allowed and paid

as follows at the annual rate provided by § 44-1-7 upon any overpayment in respect of Rhode

Island personal income tax:

      (1) From the date of the overpayment to a date, to be determined by the tax

administrator, preceding the date of a refund check by not more than thirty (30) days, whether or

not the refund check is accepted by the taxpayer after tender of the check to the taxpayer. The

acceptance of the check shall be without prejudice to any right of the taxpayer to claim any

additional overpayment and interest thereon;

      (2) From the date of the overpayment to the due date of an amount against which a credit

is taken. No interest shall be allowed or paid if the amount is less than two dollars ($2.00).

      (b) Date of payment. - The provisions of § 44-30-87(h) and (i) applicable in determining

the date of payment of tax for purposes of determining the period of limitation on credit or

refund, shall be applicable in determining the date of payment for purposes of this section.

      (c) Income tax refund within ninety (90) days of due date of tax - If any overpayment of

Rhode Island personal income tax is refunded within ninety (90) days after the last prescribed

date, or permitted by extension of time, for filing the return of the tax, or within ninety (90) days

after the return is in fact filed, no interest is allowed under this section on the overpayment.

      (d) Refund of tax caused by carryback of loss. - For purposes of this section, if any

overpayment of Rhode Island personal income tax results from a carryback of a net operating

loss, the overpayment is deemed not to have been made prior to the close of the taxable year in

which such net operating loss arises.

      (e) Cross reference. - See § 44-30-87(c), terminating interest after failure to file notice of

federal change under § 44-30-59.

     (f) For the tax year 2015, any overpayment of Rhode Island personal income tax not

refunded by June 30, 2016 shall be paid to the taxpayer with interest assessed at a rate of twelve

percent (12%) per annum compounded daily for each day the refund of the overpayment is

delayed beyond June 30, 2016.

     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 - PERSONAL INCOME TAX - PART 44-30-81 PROCEDURE

AND ADMINISTRATION

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     This act would provide that any 2015 tax overpayment would be refunded with interest

calculated at twelve percent (12%) compounded daily if not received by June 30, 2016.

     This act would take effect upon passage.

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LC006185

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