Bulletin Number
VTB 88-10
Tax Type
General Provisions
Description
Interest Rates; Third Quarter 1988
Topic
Basis of Tax
Date Issued
06-06-1988
Interest Rates; Third Quarter 1988
Although State and certain local interest rates are subject to change every quarter, the rates for the third quarter of 1988 will be the same as for the second quarter -- 9% for tax overpayments and 10% for tax underpayments.
Rate for Addition to Tax for Underpayment of Estimated Tax
Taxpayers whose taxable year ends on June 30, 1988: For the purpose of computing the addition to the tax for underpayment of Virginia estimated income taxes on Form 760C (for individuals), Form 760F (for farmers and fishermen) or Form 500C (for corporations), the 10% rate will apply through the due date of the return, October 15, 1988.
Local Tax
Localities assessing interest on delinquent taxes pursuant to Va. Code § 58.1-3916 may impose interest at a rate not to exceed the underpayment rates which are in effect for the applicable quarters of the second and subsequent years of delinquency. For the third quarter of 1988, the underpayment rate is 10%. 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
Rate for Rate for
Underpayment Overpayment
Period (Assessments) (Refunds)
7/1/83 - 12/31/84 11% 11%
1/1/85 - 6/30/85 13% 13%
7/1/85 - 12/31/85 11% 11%
1/1/86 - 6/30/86 10% 10%
7/1/86 - 12/31/86 9% 9%
1/1/87 - 9/30/87 9% 8%
10/1/87 - 12/31/87 10% 9%
1/1/88 - 3/31/88 11% 10%
4/1/88 - 6/30/88 10% 9%
7/1/88 - 9/30/88 10% 9%
Questions about interest rates may be directed to the Taxpayer Assistance Section, office Services Division, Virginia Department of Taxation, P. O. Box 6-L, Richmond, Virginia 23282, or (804) 367-8031 (Individual) or (804) 367-8036 (Corporation).
Tax Bulletins