Reduces the minimum interest rate on delinquent payments from eighteen percent (18%) per annum to twelve percent (12%) per annum.
Impact
The passage of H7930 is expected to have an immediate effect on state laws governing tax collections, providing a more lenient framework for dealing with delinquent tax payments. By reducing the interest rate, the bill may alleviate some of the financial stress that taxpayers can experience when falling behind on payments. This could lead to an increase in the collection of overdue taxes, as the lower penalties may encourage those indebted to settle their accounts more swiftly rather than allowing debts to accrue excessively high interest.
Summary
House Bill H7930 aims to amend existing tax laws concerning interest rates on delinquent payments owed to the state. Specifically, the bill proposes to reduce the minimum interest rate from eighteen percent (18%) per annum to twelve percent (12%) per annum. This reduction is significant as it lowers the financial burden on individuals and businesses that fail to meet tax obligations by the due date, thereby incentivizing timely payments and potentially increasing compliance with tax collection efforts.
Contention
While the bill presents an opportunity for improved compliance through reduced penalties, there may be concerns regarding the potential decrease in state revenue from interest payments. Some legislators and financial analysts may argue that lowering the interest rate could result in less incentive for timely tax payment and revenue collection, thereby impacting state finances in the long term. Discourse around this bill may reflect varying perspectives on how best to balance tax incentives against the need for adequate funding for civic services.
Authorizing The Town Of Barrington To Finance The Construction, Improvement, Renovation, Alteration, Furnishing And Equipping Of Public Schools And School Facilities In The Town And All Expenses Incident Thereto Including, But Not Limited To, Costs Of Design, Athletic Fields, Playgrounds, Landscaping, Parking And Costs Of Financing And To Issue Not More Than $250,000,000 Bonds And/or Notes Therefor, Subject To Approval Of State Housing Aid At A Reimbursement Rate Or State Share Ratio Of Not Less Than 35 Percent At The Time Of Issuance And Provided That The Authorization Shall Be Reduced By The Amount Of Certain Grants Received From State Bond Proceeds, From The Rhode Island Department Of Education Or From The Rhode Island School Building Authority
Authorizing The Town Of Barrington To Finance The Construction, Improvement, Renovation, Alteration, Furnishing And Equipping Of Public Schools And School Facilities In The Town And All Expenses Incident Thereto Including, But Not Limited To, Costs Of Design, Athletic Fields, Playgrounds, Landscaping, Parking And Costs Of Financing And To Issue Not More Than $250,000,000 Bonds And/or Notes Therefor, Subject To Approval Of State Housing Aid At A Reimbursement Rate Or State Share Ratio Of Not Less Than 35 Percent At The Time Of Issuance And Provided That The Authorization Shall Be Reduced By The Amount Of Certain Grants Received From State Bond Proceeds, From The Rhode Island Department Of Education Or From The Rhode Island School Building Authority