Document Number
18-120
Tax Type
General Provisions
Description
Third Quarter Interest Rates for 2018
Topic
Interest Rates
Date Issued
06-20-2018

TAX BULLETIN 18-4

Virginia Department of Taxation

 

June 20, 2018

 

VIRGINIA’S INTEREST RATES WILL REMAIN THE SAME

FOR THE THIRD QUARTER OF 2018

 

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 third quarter of 2018 will be 5% for tax underpayments (assessments) and 5% 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 third quarter of 2018 will be 7% for tax underpayments (assessments) and 7% for tax overpayments (refunds).

 

Rate for Addition to Tax for Underpayments of Estimated Tax

 

Taxpayers whose taxable year ends on June 30, 2018:  For the purposeof computing the addition to the tax for underpaymet of  Virginia estimated income taxes on Form 500C (for corporations), Form760C (individuals, estates and trusts), or Form 760F (for farmersand fishermen), the third quarter 7% underpayment rate will apply through the due date of the return, October 15, 2018.

Reduced Rate for Certain Assessments in Dispute

For administrative appeals filed with the Department of Taxation 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 third quarter of 2018, rounded to the nearest whole percent, is 2%. Accordingly, the reduced rate for the third quarter of 2018 for qualifying assessments in dispute is 2%.

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 third quarter of 2018, the federal underpayment rate is 5%.

 

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-Mar-18

6%

6%

1%

1-Apr-18

30-Sept-18

7%

7%

2%

 

 

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 Virginia Tax’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 business taxes).

 

 

Factors for Computing Daily Interest 7%
(Simple interest pursuant to Va. Code § 58.1-15) 365 day year
                           
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
  0.00000 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
Rulings of the Tax Commissioner

Last Updated 06/20/2018 15:44