SLS 20RS-255 ORIGINAL
2020 Regular Session
SENATE BILL NO. 211
BY SENATOR ALLAIN
INTEREST RATES. Changes the interest rate on refunds of state tax overpayments.
(1/1/21)
1 AN ACT
2 To amend and reenact R.S. 47:1624(A)(1), relative to tax collection and administration; to
3 equalize the interest rates on unpaid taxes and refunds of tax overpayments; to
4 provide for an effective date; and to provide for related matters.
5 Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 47:1624(A)(1) is hereby amended and reenacted to read as follows:
7 ยง1624. Interest on refunds
8 A.(1) Notwithstanding (a) Except as otherwise provided in this Section
9 and notwithstanding any other provision of law to the contrary, on all refunds or
10 credits the secretary shall compute and allow as part of the refund or credit, interest
11 at the annual rate established in R.S. 13:4202 from ninety days after the later of the
12 due date of the return, the filing date of the return or claim for refund on which the
13 overpayment is claimed, or the date the tax was paid.
14 (b) Beginning January 1, 2021, on all refunds or credits, interest shall
15 accrue at three percentage points above the annual rate established in R.S.
16 13:4202 from ninety days after the later of the due date of the return, the filing
17 date of the return or claim for refund on which the overpayment is claimed, or
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 211
SLS 20RS-255 ORIGINAL
1 the date the tax was paid.
2 (c) An overpayment shall bear no interest if it is credited to the taxpayer's
3 account. No interest on refunds or credits shall be allowed if the secretary proves by
4 clear and convincing evidence that a person has deliberately overpaid a tax in order
5 to derive the benefit of the interest allowed by this Section. Payments of interest
6 authorized by this Section shall be made from funds derived from current collections
7 of the tax to be refunded or credited.
8 * * *
9 Section 2. This Act shall become effective on January 1, 2021.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 211 Original 2020 Regular Session Allain
Present law provides for interest on unpaid taxes as well as for interest on refunds of
overpaid taxes.
Present law interest rate on refunds of overpayments is equal to the judicial interest rate.
Present law interest rate on payments of unpaid taxes is three percentage points above the
judicial interest rate.
Proposed law increases the interest rate on refunds of overpayments of tax on or after
January 1, 2021, to three percentage points above the judicial interest rate.
Effective January 1, 2021.
(Amends R.S. 47:1624(A)(1))
Page 2 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.