Bulletin Number
VTB 87-2
Tax Type
General Provisions
Description
Interest Rates; Third Quarter 1987
Topic
Basis of Tax
Date Issued
07-01-1987
Virginia Tax Bulletin
Virginia Department of Taxation
87-2
DATE: July 1, 1987
SUBJECT: Interest Rates
Although State and certain local interest rates are now subject to change every quarter, the rates for the third quarter of 1987 will be the same as for the first and second quarters - 8% for tax overpayments and 9% for tax underpayments.
Rate for Addition to Tax for Underpayment of Estimated Tax
Taxpayers whose taxable year ends on June 30, 1987: For the purpose of computing the addition to the tax for underpayment of Virginia estimated income taxes on Form 760C (for individuals), Form 760E (for farmers and fishermen), or Form 500C (for corporations), the 9% rate will apply through the October 15, 1987 due date of the return.
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 three quarters of 1987, the underpayment rate is 9%. 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%
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) 257-8031 (Individual) or 257-8036 (Corporation).
Tax Bulletins