2024 -- H 7996 | |
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LC005414 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2024 | |
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A N A C T | |
RELATING TO TAXATION -- STATE TAX OFFICIALS | |
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Introduced By: Representatives McEntee, Fogarty, Tanzi, Dawson, Casey, Cortvriend, | |
Date Introduced: March 05, 2024 | |
Referred To: House 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 no event shall the rate of interest exceed twenty-one percent |
13 | (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:. |
16 | (i) For trust fund taxes as established by §§ 44-19-35 and 44-30-76, in no event shall the |
17 | rate of interest exceed twenty-one percent (21%) per annum nor be less than eighteen percent (18%) |
18 | per annum. |
19 | (c) “Prime rate” as used in subsection (b) of this section means the predominant prime rate |
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1 | quoted by commercial banks to large businesses as determined by the board of governors of the |
2 | Federal Reserve System. |
3 | (d) Notwithstanding any provisions of the general laws to the contrary, the tax |
4 | administrator shall waive interest and penalty on the taxable portion of each Paycheck Protection |
5 | Program loan taxed pursuant to §§ 44-11-11(a)(1)(iv), 44-14-11, and 44-30-12(b)(8) and forgiven |
6 | during tax year 2020 provided that the tax on that portion is paid in full on or before March 31, |
7 | 2022. The tax administrator shall make available suitable forms with instructions for making tax |
8 | payments on the taxable portion of such forgiven Paycheck Protection Program loans. |
9 | SECTION 2. This act shall take effect upon passage. |
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LC005414 | |
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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 reduce the interest rate on delinquent payments to twelve percent (12%) per |
2 | annum. |
3 | This act would take effect upon passage. |
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LC005414 | |
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