Tax Type
General Provisions
Description
INTEREST RATES SECOND QUARTER 1991
Topic
Rate of Tax
Date Issued
04-01-1991
Tax Bulletin 91-2
INTEREST RATES
SECOND QUARTER 1991
SECOND QUARTER 1991
Rates change: State and certain local interest rates are subject to change every quarter. The rates for the second quarter of 1991 will be 10% for tax underpayments (assessments) and 9% for tax overpayments (refunds). These rates have changed from the rates for the first quarter of 1991 (which were 11% and 10%, respectively).
Rate for Addition to Tax for Underpayments of Estimated Tax
Individuals: Tax returns for the calendar year 1990 are due on May 1, 1991. For the purpose of computing the addition to the tax for underpayment of Virginia estimated income taxes on Form 760C (for individuals, estates and trusts) or Form 760F (for farmers and fishermen), the first quarter 11% underpayment rate will apply through the due date of the return, May 1, 1991.
Corporations: Tax returns for the calendar year 1990 are due on April 15, 1991. For the purpose of computing the addition to the tax for underpayment of Virginia estimated income taxes on Form 500C, the first quarter 1 1% underpayment rate will apply through the due date of the return, April 15, 1991.
Taxpayers whose taxable year ends on March 31, 1991: For the purpose of computing the addition to the tax for underpayment of Virginia estimated income taxes on Form 760C (for individuals, estates and trusts), Form 760F (for farmers and fishermen) or Form 500C (for corporations), the second quarter 10% underpayment rate will apply through the due date of the return, July 15, 1991.
Local Tax
Assessments: Localities assessing interest on delinquent taxes pursuant to 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 underpayment rate in effect for the applicable quarter, whichever is greater, for the second and subsequent years of delinquency. For the second quarter of 1991, the underpayment rate is 10%.
Refunds: Localities which have provided for refund of erroneously assessed taxes may provide by ordinance that such refund be repaid with interest at a rate which does not exceed the rate imposed by the locality for delinquent taxes.
Recent Interest Rates
Underpayment Overpayment
Period Rate Period (Assessment) (Refund)
2/1/82 -12/31/82 20% 1/1/87 -9/30/87 9% 8%
1/1/83-6/30/83 16% 10/1/87-12/31/87 10% 9%
7/1/83-12/31/84 11% 1/1/88 -3/31/88 11% 10%
1/1/856/30/85 13% 4/1/88 -9/30/88 10% 9%
7/1/85-12/31/85 11% 10/1/88-3/31/89 11% 10%
1/1/86-6/30/86 10% 4/1/89 -9/30/89 12% 11%
7/1/8612/31/86 9% 10/1/89-3/31/91 11% 10%
4/1/91 -6/30/91 10% 9%
For additional information: Contact the Taxpayer Assistance Section, Office Services Division, Virginia Department of Taxation, P. O. Box 6-L, Richmond, Virginia 23282
Rulings of the Tax Commissioner