§ 44-1-7.1 - Interest on overpayments.
SECTION 44-1-7.1
§ 44-1-7.1 Interest on overpayments.– (a) Each January 1 the tax administrator shall compute the rate of interest tobe in effect for that calendar year by reference to the prime rate, which wasin effect on October 1 of the preceding year. The term "prime rate" shall meanthe predominant prime rate quoted by commercial banks to large businesses asdetermined by the board of governors of the Federal Reserve System.
(b) Notwithstanding any general or specific statute to thecontrary, overpayments of state taxes or surcharges that are remitted to thetax division pursuant to § 39-21.1-14, shall bear interest at the primerate as defined in § 44-1-7.1(a) from the date the tax or the surchargethat is referenced in this provision was paid, or from the date including anyextensions of the date the tax became due, whichever of the dates occurs later.
(c) If any overpayment of state tax is refunded within ninety(90) days after the last date prescribed (or permitted by extension of time)for filing the return of the tax, or within ninety (90) days after the returnis in fact filed, no interest shall be allowed under this section on theoverpayment.
(d) For the purposes of this section, if any overpayment ofstate tax results from a carry-back of a net operating loss, the overpayment isdeemed not to have been made prior to the close of the taxable year in whichthe net operating loss arises.
(e) If any overpayment of a surcharge referenced insubsection (b) of this section is refunded within ninety (90) days afternotification of overpayment of the surcharge, no interest shall be allowedunder this section on the overpayment.