Document Number
17-167
Tax Type
General Provisions
Description
2017 FOURTH QUARTER INTEREST RATES
Topic
Rate of Tax
Date Issued
09-15-2017

TAX BULLETIN 17-11
Virginia Department of Taxation
September 15, 2017

VIRGINIA’S INTEREST RATES WILL REMAIN THE SAME FOR THE FOURTH QUARTER OF 2017

Federal Rates Remain Unchanged:  State and certain local interest rates are subject to change every quarter due to changes in federal rates established pursuant to Internal Revenue Code (“IRC”) § 6621.  IRC § 6621 dictates that the federal underpayment and overpayment rates are three percentage points higher than the federal short-term rate.  Federal rates for the fourth quarter of 2017 will be 4% for tax underpayments (assessments) and 4% for tax overpayments (refunds) by noncorporate taxpayers. 

Virginia Code § 58.1-15 provides that the underpayment rate for Virginia taxes will be 2% higher than the corresponding federal rate and the overpayment rate for Virginia taxes will be 2% higher than the federal overpayment rate for noncorporate taxpayers.  Accordingly, the Virginia rates for the fourth quarter of 2017 will be 6% for tax underpayments (assessments) and 6% for tax overpayments (refunds).

Rate for Addition to Tax for Underpayments of Estimated Tax

Taxpayers whose taxable year ends on September 30, 2017:  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 6% underpayment rate will apply through the due date of the return, January 16, 2018.

Reduced Rate for Certain Assessments in Dispute:

For administrative appeals filed with the Department of Taxation (“the Department”) on or after July 1, 2011, a reduced interest rate equal to the federal short term rate established pursuant to IRC § 6621(b) applies, beginning nine months after the date of assessment until a determination is issued. The federal short-term rate established pursuant to IRC § 6621(b) for the fourth quarter of 2017, rounded to the nearest whole percent, is 1%. Accordingly, the reduced rate for the fourth quarter of 2017 for qualifying assessments in dispute is 1%. 

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 fourth quarter of 2017, the federal underpayment rate is 4%.

Refunds:  Localities that charge interest on delinquent taxes are required to pay 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

Overpayment (Refund)

Underpayment (Assessment)

Reduced

Rate

Beginning

Through

1-Jul-04

30-Sept-04

6%

6%

-

1-Oct-04

31-Mar-05

7%

7%

-

1-Apr-05

30-Sept-05

8%

8%

-

1-Oct-05

30-Jun-06

9%

9%

-

1-July-06

31-Dec-07

10%

10%

-

1-Jan-08

31-Mar-08

9%

9%

-

1-Apr-08

30-Jun-08

8%

8%

-

1-Jul-08

30-Sept-08

7%

7%

-

1-Oct-08

31-Dec-08

8%

8%

-

1-Jan-09

31-Mar-09

7%

7%

-

1-Apr-09

31-Dec-10

6%

6%

-

1-Jan-11

31-Mar-11

5%

5%

-

1-Apr-11

30-Sept-11

6%

6%

-

1-Oct-11

31-Mar-16

5%

5%

0%

1-Apr-16

31-Dec-17

6%

6%

1%

 

Additional Information:  This Tax Bulletin, along with other reference documents, is available online in the Laws, Rules and Decisions section of the Department’s website, located at www.tax.virginia.gov.  If you have questions about interest rates, please visit the Department’s website or contact the Department at (804) 367-8031 (for individuals), (804) 786-2450 (for Soft Drink Excise Tax and Aircraft Sales and Use Tax), or (804) 367-8037 (for all other businesses).

         Factors for Computing Daily Interest   6%
                                 (Simple interest pursuant to Va. Code § 58.1-15)       365 day year
                           
1 0.00016 53 0.00871 105 0.01726 157 0.02581 210 0.03452 262 0.04307 314 0.05162
2 0.00033 54 0.00888 106 0.01742 158 0.02597 211 0.03468 263 0.04323 315 0.05178
3 0.00049 55 0.00904 107 0.01759 159 0.02614 212 0.03485 264 0.04340 316 0.05195
4 0.00066 56 0.00921 108 0.01775 160 0.02630 213 0.03501 265 0.04356 317 0.05211
5 0.00082 57 0.00937 109 0.01792 161 0.02647 214 0.03518 266 0.04373 318 0.05227
6 0.00099 58 0.00953     162 0.02663 215 0.03534 267 0.04389 319 0.05244
7 0.00115 59 0.00970 110 0.01808 163 0.02679 216 0.03551 268 0.04405    
8 0.00132     111 0.01825 164 0.02696 217 0.03567 269 0.04422 320 0.05260
9 0.00148 60 0.00986 112 0.01841 165 0.02712 218 0.03584     321 0.05277
    61 0.01003 113 0.01858 166 0.02729 219 0.03600 270 0.04438 322 0.05293
10 0.00164 62 0.01019 114 0.01874 167 0.02745     271 0.04455 323 0.05310
11 0.00181 63 0.01036 115 0.01890 168 0.02762 220 0.03616 272 0.04471 324 0.05326
12 0.00197 64 0.01052 116 0.01907 169 0.02778 221 0.03633 273 0.04488 325 0.05342
13 0.00214 65 0.01068 117 0.01923     222 0.03649 274 0.04504 326 0.05359
14 0.00230 66 0.01085 118 0.01940 170 0.02795 223 0.03666 275 0.04521 327 0.05375
15 0.00247 67 0.01101 119 0.01956 171 0.02811 224 0.03682 276 0.04537 328 0.05392
16 0.00263 68 0.01118     172 0.02827 225 0.03699 277 0.04553 329 0.05408
17 0.00279 69 0.01134 120 0.01973 173 0.02844 226 0.03715 278 0.04570    
18 0.00296     121 0.01989 174 0.02860 227 0.03732 279 0.04586 330 0.05425
19 0.00312 70 0.01151 122 0.02005 175 0.02877 228 0.03748     331 0.05441
    71 0.01167 123 0.02022 176 0.02893 229 0.03764 280 0.04603 332 0.05458
20 0.00329 72 0.01184 124 0.02038 177 0.02910     281 0.04619 333 0.05474
21 0.00345 73 0.01200 125 0.02055 178 0.02926 230 0.03781 282 0.04636 334 0.05490
22 0.00362 74 0.01216 126 0.02071 179 0.02942 231 0.03797 283 0.04652 335 0.05507
23 0.00378 75 0.01233 127 0.02088     232 0.03814 284 0.04668 336 0.05523
24 0.00395 76 0.01249 128 0.02104 180 0.02959 233 0.03830 285 0.04685 337 0.05540
25 0.00411 77 0.01266 129 0.02121 181 0.02975 234 0.03847 286 0.04701 338 0.05556
26 0.00427 78 0.01282     182 0.02992 235 0.03863 287 0.04718 339 0.05573
27 0.00444 79 0.01299 130 0.02137 183 0.03008 236 0.03879 288 0.04734    
28 0.00460     131 0.02153 184 0.03025 237 0.03896 289 0.04751 340 0.05589
29 0.00477 80 0.01315 132 0.02170 185 0.03041 238 0.03912   0.00000 341 0.05605
    81 0.01332 133 0.02186 186 0.03058 239 0.03929 290   342 0.05622
30 0.00493 82 0.01348 134 0.02203 187 0.03074     291 0.04784 343 0.05638
31 0.00510 83 0.01364 135 0.02219 188 0.03090 240 0.03945 292 0.04800 344 0.05655
32 0.00526 84 0.01381 136 0.02236 189 0.03107 241 0.03962 293 0.04816 345 0.05671
33 0.00542 85 0.01397 137 0.02252     242 0.03978 294 0.04833 346 0.05688
34 0.00559 86 0.01414 138 0.02268 190 0.03123 243 0.03995 295 0.04849 347 0.05704
35 0.00575 87 0.01430 139 0.02285 191 0.03140 244 0.04011 296 0.04866 348 0.05721
36 0.00592 88 0.01447     192 0.03156 245 0.04027 297 0.04882 349 0.05737
37 0.00608 89 0.01463 140 0.02301 193 0.03173 246 0.04044 298 0.04899    
38 0.00625     141 0.02318 194 0.03189 247 0.04060 299 0.04915 350 0.05753
39 0.00641 90 0.01479 142 0.02334 195 0.03205 248 0.04077     351 0.05770
  0.00000 91 0.01496 143 0.02351 196 0.03222 249 0.04093 300 0.04932 352 0.05786
40 0.00658 92 0.01512 144 0.02367 197 0.03238     301 0.04948 353 0.05803
41 0.00674 93 0.01529 145 0.02384 198 0.03255 250 0.04110 302 0.04964 354 0.05819
42 0.00690 94 0.01545 146 0.02400 199 0.03271 251 0.04126 303 0.04981 355 0.05836
43 0.00707 95 0.01562 147 0.02416     252 0.04142 304 0.04997 356 0.05852
44 0.00723 96 0.01578 148 0.02433 200 0.03288 253 0.04159 305 0.05014 357 0.05868
45 0.00740 97 0.01595 149 0.02449 201 0.03304 254 0.04175 306 0.05030 358 0.05885
46 0.00756 98 0.01611     202 0.03321 255 0.04192 307 0.05047 359 0.05901
47 0.00773 99 0.01627 150 0.02466 203 0.03337 256 0.04208 308 0.05063    
48 0.00789     151 0.02482 204 0.03353 257 0.04225 309 0.05079 360 0.05918
49 0.00805 100 0.01644 152 0.02499 205 0.03370 258 0.04241     361 0.05934
    101 0.01660 153 0.02515 206 0.03386 259 0.04258 310 0.05096 362 0.05951
50 0.00822 102 0.01677 154 0.02532 207 0.03403     311 0.05112 363 0.05967
51 0.00838 103 0.01693 155 0.02548 208 0.03419 260 0.04274 312 0.05129 364 0.05984
52 0.00855 104 0.01710 156 0.02564 209 0.03436 261 0.04290 313 0.05145 365 0.06000

Last Updated 10/02/2017 07:31