§ 105-241.21. Interest on taxes. - North Carolina Statutes

§ 105‑241.21.  Intereston taxes.

(a)        Rate. – Theinterest rate set by the Secretary applies to interest that accrues onoverpayments and assessments of tax. On or before June 1 and December 1 of eachyear, the Secretary must establish the interest rate to be in effect during thesix‑month period beginning on the next succeeding July 1 and January 1,respectively. In determining the interest rate, the Secretary must give dueconsideration to current market conditions and to the rate that will be ineffect on that date pursuant to the Code. If no new rate is established, therate in effect during the preceding six‑month period continues in effect.The rate established by the Secretary may not be less than five percent (5%)per year and may not exceed sixteen percent (16%) per year.

(b)        Accrual onUnderpayments. – Interest accrues on an underpayment of tax from the date setby statute for payment of the tax until the tax is paid. Interest accrues onlyon the principal of the tax and does not accrue on any penalty.

(c)        Accrual on Refund.– Interest accrues on an overpayment of tax from the time set in the followingsubdivisions until the refund is paid.

(1)        Franchise, income,and gross premiums. – Interest on an overpayment of a tax levied under Article3 of this Chapter and payable on an annual basis or of a tax levied underArticle 4 or 8B of this Chapter accrues from a date 45 days after the latest ofthe following dates:

a.         The date the finalreturn was filed.

b.         The date the finalreturn was due to be filed.

c.         The date of theoverpayment. The date of an overpayment of a tax levied under Article 4 orArticle 8B of this Chapter is determined in accordance with section 6611(d),(f), (g), and (h) of the Code.

(2)        All other taxes. – Intereston an overpayment of a tax that is not included in subdivision (1) of thissubsection accrues from a date that is 90 days after the date the tax was paid.

(d)        When Refund IsPaid. – A refund sent to a taxpayer is considered paid on a date determined bythe Secretary that is no sooner than five days after a refund check is mailed.A refund set off against a debt pursuant to Chapter 105A of the GeneralStatutes is considered paid five days after the Department mails the taxpayer anotice of the setoff, unless G.S. 105A‑5 or G.S. 105A‑8 requiresthe agency that requested the setoff to return the refund to the taxpayer. Inthis circumstance, the refund that was set off is not considered paid untilfive days after the agency that requested the refund mails the taxpayer a checkfor the refund. (2007‑491,s. 1.)