Tax Type
General Provisions
Description
INTEREST RATES FIRST QUARTER 1991
Topic
Rate of Tax
Date Issued
11-12-1990
90-9
INTEREST RATES
FIRST QUARTER 1991
FIRST QUARTER 1991
State and certain local interest rates are subject to change every quarter. The rates for the first quarter of 1991 will be 11% for tax underpayments (assessments) and 10% for tax overpayments (refunds). These rates are unchanged from the rates for the fourth quarter of 1990.
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 11% underpayment rate will apply through the due date of the return, April 15, 1991.
Local Tax
Assessments: Localities assessing interest on delinquent taxes pursuant to Va. Code section 58.1-3916 may impose interest at a rate not to exceed 10% for the first year of , 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 first quarter of 1991, the underpayment rate is 11%.
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
Underpayment Overpayment
Period Rate Period Assessment Refund
2/1/82-2/31/82 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%
1/1/85-6/30/85 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%
7/1/86-12/31/86 9% 10/1/89-3/31/91 11% 10%
For additional information: Contact 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)
Rulings of the Tax Commissioner