§ 44-1-7 - Interest on delinquent payments. [Effective until August 15, 2010.].
SECTION 44-1-7
§ 44-1-7 Interest on delinquent payments.[Effective until August 15, 2010.]. – (a) Whenever the full amount of any state tax or any portion or deficiency, asfinally determined by the tax administrator, or any surcharge that is requiredto be remitted to the tax division pursuant to § 39-21.1-14, has not beenpaid on the date when it is due and payable, whether the time has been extendedor not, there shall be added as part of the tax or portion or deficiency, orsurcharge as referenced in this provision, interest at the rate as determinedin accordance with subsection (b) of this section, notwithstanding any generalor specific statute to the contrary; provided, however, no interest orpenalties shall be added to any deficiency resulting from imputed income fromdomestic partner healthcare benefits for tax years 2002 through 2004 providedthe taxpayer files amended returns by August 15, 2006.
(b) Each January 1 the tax administrator shall compute therate of interest to be in effect for that calendar year by adding two percent(2%) to the prime rate, which was in effect on October 1 of the preceding year.In no event shall the rate of interest exceed twenty-one percent (21%) perannum nor be less than eighteen percent (18%) per annum.
(c) "Prime rate" as used in subsection (b) of this sectionmeans the predominant prime rate quoted by commercial banks to large businessesas determined by the board of governors of the Federal Reserve System.