02-157 | Virginia Tax

Tax Type

General Provisions

Description

First Quarter Interest Rates 2003

Topic

Rate of Tax

Date Issued

12-19-2002

TAX BULLETIN 02-6
Virginia Department of Taxation

INTEREST RATES

FIRST QUARTER 2003

Federal Rates Changed: State and certain local interest rates are subject to change every quarter based on changes in federal rates established pursuant to IRC § 6621. The federal rates for the first quarter of 2003 will be 5% for tax underpayments (assessments), 5% for tax overpayments (refunds) by taxpayers other than corporations, and 7% for “large corporate underpayments” as defined in IRC § 6621(c). Va. Code § 58.1-15 provides that the underpayment rates for Virginia taxes will be 2% higher than the corresponding federal rates and overpayment rates for Virginia taxes will be 2% higher than the federal rate for noncorporate taxpayers. Accordingly, the Virginia rates for the first quarter of 2003 will be 7% for tax underpayments (assessments), 7% for tax overpayments (refunds), and 9% for “large corporate underpayments.”

Rate for Addition to Tax for Underpayments of Estimated Tax

Taxpayers whose taxable year ends on September 30, 2002: For the purpose of computing the addition to the tax for underpayment of Virginia estimated income taxes on Form 500C (for corporations), Form 760C (for individuals, estates and trusts), or Form 760F (for farmers and fishermen), the fourth quarter 8% underpayment rate will apply through the due date of the return, January 15, 2003, (for corporations), and February 3, 2003, (for individuals and fiduciaries).

Taxpayers whose taxable year ends on December 31, 2002: For the purpose of computing the addition to the tax for underpayment of Virginia estimated income taxes on Form 500C (for corporations), Form 760C (for individuals, estates and trusts), or Form 760F (for farmers and fishermen), the first quarter 7% underpayment rate will apply through the due date of the return, April 16, 2003 (for corporations), and May 1, 2003 (for individuals and fiduciaries).

Local Tax

Assessments: Localities that assess interest on delinquent taxes under Va. Code § 58.1-3916 may impose interest at a rate not to exceed 10% for the first year of delinquency, and at a rate not to exceed 10% or the federal underpayment rate in effect for the applicable quarter, whichever is greater, for the second and subsequent years of delinquency. For the first quarter of 2003, the federal underpayment rate is 5%.

Refunds: Effective July 1, 1999, localities which charge interest on delinquent taxes are required paying interest to taxpayers on all overpayments or erroneously assessed taxes at the same rate as they charge interest on delinquent taxes under Va. Code § 58.1-3916.

Recent Interest Rates

Accrual	Period	Non –Corporation Overpayment	Corporation Overpayment	Underpayment	Large Corporate
Beginning	Through	(Refund)	(Refund)	(Assessment)	Underpayment
1-Oct-92	30-Jun-94	6%	6%	9%	11%
1-Jul-94	30-Sep-94	7%	7%	10%	12%
1-Oct-94	31-Mar-95	8%	8%	11%	13%
1-Apr-95	30-Jun-95	9%	9%	12%	14%
1-Jul-95	31-Mar-96	8%	8%	11%	13%
1-Apr-96	30-Jun-96	7%	7%	10%	12%
1-Jul-96	31-Mar-98	8%	8%	11%	13%
1-Apr-98	31-Dec-98	7%	7%	10%	12%
1-Jan-99	31-Mar-99	7%	6%	9%	11%
1-Apr-99	31-Dec-99	8%	7%	10%	12%
1-Jan-00	31-Mar-00	10%	10%	10%	12%
1-Apr-00	31-Mar-01	11%	11%	11%	13%
1-Apr-01	30-Jun-01	10%	10%	10%	12%
1-Jul-01	31-Dec-01	9%	9%	9%	11%
1-Jan-02	31-Dec-02	8%	8%	8%	10%
1-Jan-03	31-Mar-03	7%	7%	7%	9%

Additional Information: Contact Customer Services, Virginia Department of Taxation, P. O. Box 1115, Richmond, Virginia 23218-1115, or call the following numbers for additional information about interest rates and penalties.

Individual & Fiduciary Income Tax	(804) 367-8031
Corporation Income Tax	(804) 367-8037
Withholding Tax	(804) 367-8037
Soft Drink Excise Tax	(804) 786-2450
Aircraft Sales & Use Tax	(804) 367-8098
Other Sales & Use Taxes	(804) 367-8037

- In addition, this Tax Bulletin along with other reference documents are available online in the Tax Policy Library section of the Department of Taxation’s web site, located at www.tax.state.va.us.

Factor for Computing Daily Interest 7% (365 day year)
(Simple Interest pursuant to Va Code § 58.1-15)

1	0.00019	53	0.01016	105	0.02014	157	0.03011	210	0.04027	262	0.05025	314	0.06022
2	0.00038	54	0.01036	106	0.02033	158	0.03030	211	0.04047	263	0.05044	315	0.06041
3	0.00058	55	0.01055	107	0.02052	159	0.03049	212	0.04066	264	0.05063	316	0.06060
4	0.00077	56	0.01074	108	0.02071	160	0.03068	213	0.04085	265	0.05082	317	0.06079
5	0.00096	57	0.01093	109	0.02090	161	0.03088	214	0.04104	266	0.05101	318	0.06099
6	0.00115	58	0.01112			162	0.03107	215	0.04123	267	0.05121	319	0.06118
7	0.00134	59	0.01132	110	0.02110	163	0.03126	216	0.04142	268	0.05140
8	0.00153			111	0.02129	164	0.03145	217	0.04162	269	0.05159	320	0.06137
9	0.00173	60	0.01151	112	0.02148	165	0.03164	218	0.04181			321	0.06156
		61	0.01170	113	0.02167	166	0.03184	219	0.04200	270	0.05178	322	0.06175
10	0.00192	62	0.01189	114	0.02186	167	0.03203			271	0.05197	323	0.06195
11	0.00211	63	0.01208	115	0.02205	168	0.03222	220	0.04219	272	0.05216	324	0.06214
12	0.00230	64	0.01227	116	0.02225	169	0.03241	221	0.04238	273	0.05236	325	0.06233
13	0.00249	65	0.01247	117	0.02244			222	0.04258	274	0.05255	326	0.06252
14	0.00268	66	0.01266	118	0.02263	170	0.03260	223	0.04277	275	0.05274	327	0.06271
15	0.00288	67	0.01285	119	0.02282	171	0.03279	224	0.04296	276	0.05293	328	0.06290
16	0.00307	68	0.01304			172	0.03299	225	0.04315	277	0.05312	329	0.06310
17	0.00326	69	0.01323	120	0.02301	173	0.03318	226	0.04334	278	0.05332
18	0.00345			121	0.02321	174	0.03337	227	0.04353	279	0.05351	330	0.06329
19	0.00364	70	0.01342	122	0.02340	175	0.03356	228	0.04373			331	0.06348
		71	0.01362	123	0.02359	176	0.03375	229	0.04392	280	0.05370	332	0.06367
20	0.00384	72	0.01381	124	0.02378	177	0.03395			281	0.05389	333	0.06386
21	0.00403	73	0.01400	125	0.02397	178	0.03414	230	0.04411	282	0.05408	334	0.06405
22	0.00422	74	0.01419	126	0.02416	179	0.03433	231	0.04430	283	0.05427	335	0.06425
23	0.00441	75	0.01438	127	0.02436			232	0.04449	284	0.05447	336	0.06444
24	0.00460	76	0.01458	128	0.02455	180	0.03452	233	0.04468	285	0.05466	337	0.06463
25	0.00479	77	0.01477	129	0.02474	181	0.03471	234	0.04488	286	0.05485	338	0.06482
26	0.00499	78	0.01496			182	0.03490	235	0.04507	287	0.05504	339	0.06501
27	0.00518	79	0.01515	130	0.02493	183	0.03510	236	0.04526	288	0.05523
28	0.00537			131	0.02512	184	0.03529	237	0.04545	289	0.05542	340	0.06521
29	0.00556	80	0.01534	132	0.02532	185	0.03548	238	0.04564		0.00000	341	0.06540
		81	0.01553	133	0.02551	186	0.03567	239	0.04584	290		342	0.06559
30	0.00575	82	0.01573	134	0.02570	187	0.03586			291	0.05581	343	0.06578
31	0.00595	83	0.01592	135	0.02589	188	0.03605	240	0.04603	292	0.05600	344	0.06597
32	0.00614	84	0.01611	136	0.02608	189	0.03625	241	0.04622	293	0.05619	345	0.06616
33	0.00633	85	0.01630	137	0.02627			242	0.04641	294	0.05638	346	0.06636
34	0.00652	86	0.01649	138	0.02647	190	0.03644	243	0.04660	295	0.05658	347	0.06655
35	0.00671	87	0.01668	139	0.02666	191	0.03663	244	0.04679	296	0.05677	348	0.06674
36	0.00690	88	0.01688			192	0.03682	245	0.04699	297	0.05696	349	0.06693
37	0.00710	89	0.01707	140	0.02685	193	0.03701	246	0.04718	298	0.05715
38	0.00729			141	0.02704	194	0.03721	247	0.04737	299	0.05734	350	0.06712
39	0.00748	90	0.01726	142	0.02723	195	0.03740	248	0.04756			351	0.06732
		91	0.01745	143	0.02742	196	0.03759	249	0.04775	300	0.05753	352	0.06751
40	0.00767	92	0.01764	144	0.02762	197	0.03778			301	0.05773	353	0.06770
41	0.00786	93	0.01784	145	0.02781	198	0.03797	250	0.04795	302	0.05792	354	0.06789
42	0.00805	94	0.01803	146	0.02800	199	0.03816	251	0.04814	303	0.05811	355	0.06808
43	0.00825	95	0.01822	147	0.02819			252	0.04833	304	0.05830	356	0.06827
44	0.00844	96	0.01841	148	0.02838	200	0.03836	253	0.04852	305	0.05849	357	0.06847
45	0.00863	97	0.01860	149	0.02858	201	0.03855	254	0.04871	306	0.05868	358	0.06866
46	0.00882	98	0.01879			202	0.03874	255	0.04890	307	0.05888	359	0.06885
47	0.00901	99	0.01899	150	0.02877	203	0.03893	256	0.04910	308	0.05907
48	0.00921			151	0.02896	204	0.03912	257	0.04929	309	0.05926	360	0.06904
49	0.00940	100	0.01918	152	0.02915	205	0.03932	258	0.04948			361	0.06923
		101	0.01937	153	0.02934	206	0.03951	259	0.04967	310	0.05945	362	0.06942
50	0.00959	102	0.01956	154	0.02953	207	0.03970			311	0.05964	363	0.06962
51	0.00978	103	0.01975	155	0.02973	208	0.03989	260	0.04986	312	0.05984	364	0.06981
52	0.00997	104	0.01995	156	0.02992	209	0.04008	261	0.05005	313	0.06003	365	0.07000



													9%
													365 day year

1	0.00025	53	0.01307	105	0.02589	157	0.03871	210	0.05178	262	0.06460	314	0.07742
2	0.00049	54	0.01332	106	0.02614	158	0.03896	211	0.05203	263	0.06485	315	0.07767
3	0.00074	55	0.01356	107	0.02638	159	0.03921	212	0.05227	264	0.06510	316	0.07792
4	0.00099	56	0.01381	108	0.02663	160	0.03945	213	0.05252	265	0.06534	317	0.07816
5	0.00123	57	0.01405	109	0.02688	161	0.03970	214	0.05277	266	0.06559	318	0.07841
6	0.00148	58	0.01430			162	0.03995	215	0.05301	267	0.06584	319	0.07866
7	0.00173	59	0.01455	110	0.02712	163	0.04019	216	0.05326	268	0.06608
8	0.00197			111	0.02737	164	0.04044	217	0.05351	269	0.06633	320	0.07890
9	0.00222	60	0.01479	112	0.02762	165	0.04068	218	0.05375			321	0.07915
		61	0.01504	113	0.02786	166	0.04093	219	0.05400	270	0.06658	322	0.07940
10	0.00247	62	0.01529	114	0.02811	167	0.04118			271	0.06682	323	0.07964
11	0.00271	63	0.01553	115	0.02836	168	0.04142	220	0.05425	272	0.06707	324	0.07989
12	0.00296	64	0.01578	116	0.02860	169	0.04167	221	0.05449	273	0.06732	325	0.08014
13	0.00321	65	0.01603	117	0.02885			222	0.05474	274	0.06756	326	0.08038
14	0.00345	66	0.01627	118	0.02910	170	0.04192	223	0.05499	275	0.06781	327	0.08063
15	0.00370	67	0.01652	119	0.02934	171	0.04216	224	0.05523	276	0.06805	328	0.08088
16	0.00395	68	0.01677			172	0.04241	225	0.05548	277	0.06830	329	0.08112
17	0.00419	69	0.01701	120	0.02959	173	0.04266	226	0.05573	278	0.06855
18	0.00444			121	0.02984	174	0.04290	227	0.05597	279	0.06879	330	0.08137
19	0.00468	70	0.01726	122	0.03008	175	0.04315	228	0.05622			331	0.08162
		71	0.01751	123	0.03033	176	0.04340	229	0.05647	280	0.06904	332	0.08186
20	0.00493	72	0.01775	124	0.03058	177	0.04364			281	0.06929	333	0.08211
21	0.00518	73	0.01800	125	0.03082	178	0.04389	230	0.05671	282	0.06953	334	0.08236
22	0.00542	74	0.01825	126	0.03107	179	0.04414	231	0.05696	283	0.06978	335	0.08260
23	0.00567	75	0.01849	127	0.03132			232	0.05721	284	0.07003	336	0.08285
24	0.00592	76	0.01874	128	0.03156	180	0.04438	233	0.05745	285	0.07027	337	0.08310
25	0.00616	77	0.01899	129	0.03181	181	0.04463	234	0.05770	286	0.07052	338	0.08334
26	0.00641	78	0.01923			182	0.04488	235	0.05795	287	0.07077	339	0.08359
27	0.00666	79	0.01948	130	0.03205	183	0.04512	236	0.05819	288	0.07101
28	0.00690			131	0.03230	184	0.04537	237	0.05844	289	0.07126	340	0.08384
29	0.00715	80	0.01973	132	0.03255	185	0.04562	238	0.05868			341	0.08408
		81	0.01997	133	0.03279	186	0.04586	239	0.05893	290	0.07151	342	0.08433
30	0.00740	82	0.02022	134	0.03304	187	0.04611			291	0.07175	343	0.08458
31	0.00764	83	0.02047	135	0.03329	188	0.04636	240	0.05918	292	0.07200	344	0.08482
32	0.00789	84	0.02071	136	0.03353	189	0.04660	241	0.05942	293	0.07225	345	0.08507
33	0.00814	85	0.02096	137	0.03378			242	0.05967	294	0.07249	346	0.08532
34	0.00838	86	0.02121	138	0.03403	190	0.04685	243	0.05992	295	0.07274	347	0.08556
35	0.00863	87	0.02145	139	0.03427	191	0.04710	244	0.06016	296	0.07299	348	0.08581
36	0.00888	88	0.02170			192	0.04734	245	0.06041	297	0.07323	349	0.08605
37	0.00912	89	0.02195	140	0.03452	193	0.04759	246	0.06066	298	0.07348
38	0.00937			141	0.03477	194	0.04784	247	0.06090	299	0.07373	350	0.08630
39	0.00962	90	0.02219	142	0.03501	195	0.04808	248	0.06115			351	0.08655
		91	0.02244	143	0.03526	196	0.04833	249	0.06140	300	0.07397	352	0.08679
40	0.00986	92	0.02268	144	0.03551	197	0.04858			301	0.07422	353	0.08704
41	0.01011	93	0.02293	145	0.03575	198	0.04882	250	0.06164	302	0.07447	354	0.08729
42	0.01036	94	0.02318	146	0.03600	199	0.04907	251	0.06189	303	0.07471	355	0.08753
43	0.01060	95	0.02342	147	0.03625			252	0.06214	304	0.07496	356	0.08778
44	0.01085	96	0.02367	148	0.03649	200	0.04932	253	0.06238	305	0.07521	357	0.08803
45	0.01110	97	0.02392	149	0.03674	201	0.04956	254	0.06263	306	0.07545	358	0.08827
46	0.01134	98	0.02416			202	0.04981	255	0.06288	307	0.07570	359	0.08852
47	0.01159	99	0.02441	150	0.03699	203	0.05005	256	0.06312	308	0.07595
48	0.01184			151	0.03723	204	0.05030	257	0.06337	309	0.07619	360	0.08877
49	0.01208	100	0.02466	152	0.03748	205	0.05055	258	0.06362			361	0.08901
		101	0.02490	153	0.03773	206	0.05079	259	0.06386	310	0.07644	362	0.08926
50	0.01233	102	0.02515	154	0.03797	207	0.05104			311	0.07668	363	0.08951
51	0.01258	103	0.02540	155	0.03822	208	0.05129	260	0.06411	312	0.07693	364	0.08975
52	0.01282	104	0.02564	156	0.03847	209	0.05153	261	0.06436	313	0.07718	365	0.09000

Rulings of the Tax Commissioner