Florida Regulations 12-3.0015: Interest Applicable to Unpaid Tax Liabilities or Amounts Not Timely Refunded
Terms Used In Florida Regulations 12-3.0015
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
(b) The interest rate will be determined pursuant to Florida Statutes § 213.235, for tax payment deficiencies that arise for taxes due on or after January 1, 2000.
(c) The interest rate which applies to a specific tax payment deficiency may fluctuate while the deficiency continues, due to the redetermination of the interest rate every six months pursuant to Florida Statutes § 213.235
(d) The interest imposed by Florida Statutes § 213.255, will be calculated pursuant to Florida Statutes § 213.235, except that the interest rate applied to a refund cannot exceed 11 percent annually. The provisions of Florida Statutes § 213.255, and rule chapters 12-6 and 12-26, F.A.C., govern the circumstances under which interest is due from and paid by the Department on refunds.
(3)(a) The daily rate of interest computed pursuant to Florida Statutes § 213.235, and this rule shall use a year based on 365 days, and 366 days in a leap year.
(b) This daily rate will be carried out to nine decimal places.
(4)(a) The interest rate determined pursuant to Florida Statutes § 213.235, is subject to change on January 1st and July 1st of each year.
(b) The applicable interest rate for any 6-month period can be obtained by any of the following methods:
1. Accessing the Department’s website at www.floridarevenue.com/taxes/rates.
2. Calling Taxpayer Services during regular business hours at (850)488-6800.
(5) The following examples are intended to help taxpayers understand how these interest rate provisions apply:
(a) The taxpayer owed $1,000 with his November 1999 sales and use tax return due 12/20/1999. Interest for sales and use tax returns due through 12/31/1999 is at the rate of 1 percent per month (which equals a daily interest rate of .000328767), and for any portion less than a month, a daily interest factor of .000328767 is applied. Assuming the taxpayer filed the return and paid the tax on 8/10/2000, interest would be calculated as follows:
CALENDAR
TOTAL
PERIOD
TAX DUE
PERIOD
RATE
INTEREST DUE
12/21/99-7/20/00
$1,000
7 months
1% per mon.
$70.00
7/21/00-8/10/00
$1,000
21 days
.000328767 per day
$6.90
Total Interest Due
$76.90
(b) The taxpayer owed $1,000 with her February 2000 sales and use tax return due 3/20/2000. The taxpayer filed the return and paid the tax on 8/01/2000. Assuming an interest rate of 8 percent for the 1/01/2000 through 6/30/2000 period, and an interest rate of 9 percent for the 7/01/2000 through 12/31/2000 period, interest would be calculated as follows:
NUMBER
DAYS IN
TOTAL
PERIOD
TAX DUE
OF DAYS
YEAR
RATE
INTEREST DUE
3/21/00-6/30/00
$1,000
102
366
8% per year
$22.29
7/01/00-8/01/00
$1,000
32
366
9% per year
$7.87
Total Interest Due
$30.16
(c) The taxpayer underpaid intangible tax by $500 on 6/30/2000. The taxpayer paid the additional tax due on 11/15/2000. Assuming an interest rate of 9 percent for the 7/01/2000 through 12/31/2000 period, interest would be calculated as follows:
NUMBER
DAYS IN
TOTAL
PERIOD
TAX DUE
OF DAYS
YEAR
RATE
INTEREST DUE
7/01/00-11/15/00
$500
138
366
9% per year
$16.97
Rulemaking Authority Florida Statutes § 213.06(1). Law Implemented 213.235, 213.255 FS. History-New 4-2-00, Amended 1-25-12.