Bulletin Number
VTB 88-16
Tax Type
General Provisions
Description
Interest Rates; First Quarter 1989
Topic
Basis of Tax
Date Issued
12-07-1988
Interest Rates First Quarter 1989
Although state and certain local interest rates are subject to change every quarter, the rates for the first quarter of 1989 will be the same as for the fourth quarter of 1988= 10% for tax overpayments and 11% for tax underpayments.
Rate for Addition to Tax for Underpayment of Estimated Tax
Individuals: Tax returns for the calendar year 1988 are due on May 1, 1989. For the purpose of computing the addition to the tax for underpayment of Virginia estimated income taxes on Form 760C (for individuals) and Form 760F (for farmers and fishermen), the 11% rate will apply through the due date of the return, May 1, 1989.
Corporations: Tax returns for the calendar year 1988 are due on April 15, 1989. For the purpose of computing the addition to the tax for underpayment of Virginia estimated income taxes on Form 500C, the 11% rate will apply through the due date of the return, April 15, 1989.
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 first quarter of 1989, the underpayment rate is 11%. 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
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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 = 9/30/88 10% 9%
10/1/88 = 3/31/89 11% 10%
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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