Limits the assessment of interest to 4 calendar years prior to the date on which notice of the delinquent payment is sent to the taxpayer.
Impact
The proposed amendments in HB 7121 seek to alleviate some of the financial stress on taxpayers by capping the duration of accruable interest on delinquent tax payments. This could potentially lower the overall financial penalties for late payments, enabling taxpayers to resolve their debts in a more manageable manner. By doing so, the bill could encourage timely tax payments, as the risk of accumulating excessive interest would be reduced.
Summary
House Bill 7121 introduces amendments to existing legislation concerning state taxation officials, specifically focusing on the assessment of interest on delinquent tax payments. The bill stipulates that interest charged on unpaid taxes or deficiencies will be limited to a maximum period of four calendar years prior to the date when notice of delinquency is given to the taxpayer. This change aims to provide clarity and fairness in how overdue taxes are managed, particularly in terms of the burden of interest on taxpayers.
Contention
There are not explicitly noted points of contention surrounding this bill within the provided materials. However, any legislative changes to taxation typically incite discussion among various stakeholders, including taxpayers, tax professionals, and government officials. Some may argue that limiting the interest could reduce state revenue from late payments, while others may view it as a necessary step towards more taxpayer-friendly policies.
House Resolution Amending The Rules Of The House Of Representatives For The Years 2021 And 2022 (this Resolution Would Amend The House Rules To Enable Any Member To Have Up To 3 Bills During The 2nd Year Of A Legislative Session Held For Further Study Either Substituted In Committee Or A Committee Vote For Potential Placement On The Floor Calendar.)