The 2013-15 state budget reduces the interest rate on amounts owed by the Department of Revenue (DOR) to taxpayers from 9% to 3%. This change begins on the effective date of the state budget, regardless of the timeframe to which the funds pertain.
This change made by the Legislature to lower the interest rate on amounts owed to taxpayers by DOR but not simultaneously lowering the interest rate on non-delinquent amounts owed by taxpayers to DOR was among the few tax policy disappointments in the current state budget.
WMC had sought to equalize the interest rate on non-delinquent amounts owed by taxpayers to DOR, 12% under state law, with the 9% rate previously paid by DOR to taxpayers. The interest rate on delinquent amounts owed by taxpayers to DOR is 18%.
