§ 44-1-7. Interest on delinquent payments. (a) Whenever the full amount of any state tax or any portion or deficiency, as finally determined by the tax administrator, has not been paid on the date when it is due and payable, whether the time has been extended or not, there shall be added as part of the tax or portion or deficiency interest at the rate as determined in accordance with subsection (b) of this section, notwithstanding any general or specific statute to the contrary.
(b) Each January 1 the tax administrator shall compute the rate 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%) per annum nor be less than eighteen percent (18%) per annum.
(c) "Prime rate" as used in subsection (b) of this section means the predominant prime rate quoted by commercial banks to large businesses as determined by the board of governors of the Federal Reserve System.
History of Section. (P.L. 1974, ch. 151, art. 1, § 1; P.L. 1981, ch. 293, § 1; P.L. 1982, ch. 9, art. 4, § 1; P.L. 1984, ch. 289, § 1; P.L. 1993, ch. 138, art. 67, § 1; P.L. 2006, ch. 157, § 2; P.L. 2006, ch. 246, art. 21, § 2; P.L. 2006, ch. 631, § 2; P.L. 2007, ch. 73, art. 4, § 3.)
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