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7 LONG TITLE
8 General Description:
9 This bill modifies the Revenue and Taxation title relating to the calculation of interest
10 on tax overpayments.
11 Highlighted Provisions:
12 This bill:
13 . prescribes the calculation of interest on tax overpayments if an amended return is
14 filed; and
15 . makes technical changes.
16 Monies Appropriated in this Bill:
18 Other Special Clauses:
20 Utah Code Sections Affected:
22 59-1-402, as last amended by Chapter 93, Laws of Utah 1994
24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 59-1-402 is amended to read:
26 59-1-402. Interest.
27 (1) Notwithstanding Subsections (2) and (3), the rate of interest applicable to certain
28 installment sales for the purposes of the corporate franchise tax shall be determined pursuant to
29 Section 453A, Internal Revenue Code, as provided in Section 59-7-112 .
30 (2) Except as otherwise provided for by law, the interest rate for a calendar year for all
31 taxes and fees administered by the commission shall be calculated based on the federal
32 short-term rate determined by the Secretary of the Treasury under Section 6621, Internal
33 Revenue Code, and in effect for the preceding fourth calendar quarter.
34 (3) The interest rate calculation shall be as follows:
35 (a) [
37 of two percentage points above the federal short-term rate[
38 (b) [
39 shall be calculated at the rate of two percentage points above the federal short-term rate.
40 (4) (a) [
41 administered by the commission is refunded within 90 days after the last date prescribed for
42 filing the return of such tax or fee, no interest shall be allowed on the overpayment.
43 (b) [
44 prescribed for filing the return, no interest shall be allowed on the overpayment if the
45 overpayment is refunded within 90 days after the date the return is filed.
48 (c) (i) Notwithstanding Subsection (4)(a) or (b), in the case of an amended return,
49 interest on an overpayment shall be allowed:
50 (A) for a time period:
51 (I) that begins on the later of:
52 (Aa) the date the original return was filed; or
53 (Bb) the due date for filing the original return not including any extensions for filing
54 the original return; and
55 (II) that ends on the date the commission receives the amended return; and
56 (B) if the commission does not make a refund of an overpayment under this Subsection
57 (4)(c) within a 90-day period after the date the commission receives the amended return, for a
58 time period:
59 (I) that begins 91 days after the commission receives the amended return; and
60 (II) subject to Subsection (4)(c)(ii), that ends on the date that the commission
61 completes processing the refund of the overpayment.
62 (ii) For purposes of Subsection (4)(c)(i)(B)(II), interest shall be calculated forward
63 from the preparation date of the refund document to allow for processing.
64 (5) Interest on any underpayment, deficiency, or delinquency of any tax or fee
65 administered by the [
66 due, excluding any filing or payment extensions, to the date the payment is received.
67 (6) (a) [
68 paid on any overpayment [
69 invalid under state or federal law or declared unconstitutional under the constitution of the
70 United States or Utah if the basis for the refund is the retroactive application of a judicial
71 decision upholding the claim of unconstitutionality or the invalidation of a statute.
72 (b) For purposes of this Subsection (6):
73 (i) "[
74 United States for which the time for any further review or proceeding has expired[
75 (ii) "[
76 of a final judicial decision [
77 (A) invalidates a state or federal taxation statute; and [
78 (B) requires the state to provide refunds for overpayments that were made:
79 (I) prior to the final judicial decision; or [
80 (II) during the 180-day period after the final judicial decision.
81 (7) This section does not apply to:
82 (a) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 41-1a-301 ;
83 (b) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
86 (d) Chapter 3 [
87 (e) Chapter 4, Privilege Tax; or
88 (f) Chapter 13, Part 5[
Legislative Review Note
as of 12-9-04 3:26 PM
Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.