Or. Admin. Code § 150-305-0140

Current through Register Vol. 63, No. 10, October 1, 2024

Section 150-305-0140 - Interest on Deficiencies and Delinquencies

(1) Adjustment to statutory rate. For deficiencies and delinquencies owing on or after January 1, 2024, unless otherwise provided by law, every deficiency and delinquency arising under any law administered by the department will bear interest at the rate of eight percent annually. For historic interest rates, see section (4) of this rule.

(2) Interest start date. The interest start date for deficiencies and delinquencies will be one day after the due date of the return, excluding extensions.

(3) Interest periods.

(a) An interest period is one full calendar day beginning with the interest start date. Interest will be computed on a daily basis. The daily rate is based on a 365-day year.

(b) The daily interest rate is calculated by dividing the annual interest rate by 365 without rounding.

(4) Interest rates. The following table shows interest rates used by the department to compute interest due from taxpayers on deficiencies and delinquencies.

Percentage Rates.

Effective date - Annual rate - Monthly rate - Daily rate

Prior to January 1, 1969 - 6 - 0.5 - -

January 1, 1969 - 8 - 0.6667 - -

September 13, 1975 - 12 - 1.0 - -

June 1, 1982 - 18 - 1.5 - 0.0493

August 1, 1986 - 17 - 1.4167 - 0.0466

January 1, 1987 - 16 - 1.3333 - 0.0438

January 1, 1988 - 11 - 0.9167 - 0.0301

January 1, 1993 - 8 - 0.6667 - 0.0219

January 1, 1995 - 10 - 0.8333 - 0.0274

January 1, 1999 - 9 - 0.75 - 0.0247

January 1, 2001 - 10 - 0.8333 - 0.0274

February 1, 2002 - 8 - 0.6667 - 0.0219

February 1, 2003 - 7 - 0.5833 - 0.0192

January 1, 2004 - 6 - 0.5 - 0.0164

January 1, 2005 - 5 - 0.4167 - 0.0137

January 1, 2006 - 7 - 0.5833 - 0.0192

January 1, 2007 - 9 - 0.75 - 0.0247

January 1, 2009 - 6 - 0.5 - 0.0164

January 1, 2010 - 5 - 0.4167 - 0.0137

January 1, 2013 - 4 - 0.3333 - 0.0110

January 1, 2017 - 5 - 0.4167 - 0.0137

January 1, 2018 - 5 - N/A - 0.0137

January 1, 2019 - 6 - N/A - 0.0164

January 1, 2021 - 4 - N/A - 0.0110

January 1, 2023 - 6 - N/A - 0.0164

January 1, 2024- 8- N/A - 0.0219

The daily interest rates shown above are rounded for illustrative purposes.

Example 1: Tom filed a 2016 return reporting tax to pay of $500. He made a $500 payment on February 25, 2019. The interest start date is April 19, 2017, the first day after the due date of the return, which was April 18, 2017. Interest is computed on a daily basis as follows:

4/19/17-12/31/2018 (Annual interest rate / 365 days) x number of days x tax due

(5% / 365) x 622 days x $500 = $42.57

1/1/2019-2/24/19 (Annual interest rate / 365 days) x number of days x tax due

(6% / 365) x 55 days x $500 = $4.52

Total interest: $47.09

Or. Admin. Code § 150-305-0140

RD 2-1986, f. 7-2-86, cert. ef. 8-1-86; RD 8-1986, f. & cert. ef. 12-31-86; RD 14-1987, f. 12-18-87, cert. ef. 1-16-88; RD 11-1988, f. 12-19-88, cert. ef. 12-31-88; RD 12-1990, f. 12-20-90, cert. ef. 12-31-90; RD 7-1992, f. & cert. ef. 12-29-92; RD 5-1993, f. 12-30-93, cert. ef. 12-31-93; RD 7-1994, f. 12-15-94, cert. ef. 12-30-94; REV 7-1998, f. 11-13-98, cert. ef. 12-31-98; REV 12-2000, f. & cert. ef. 12-29-00, cert. ef. 12-31-00; REV 9-2001, f. 12-31-01, cert. ef. 2-1-02; REV 9-2002, f. 12-31-02, cert. ef. 1-31-03; REV 4-2003, f. & cert. ef. 12-31-03; REV 10-2004, f. 12-29-04 cert. ef. 12-31-04; REV 5-2005, f. 12-30-05, cert. ef. 1-1-06; REV 11-2006, f. 12-27-06, cert. ef. 1-1-07; REV 16-2008, f. 12-26-08, cert. ef. 1-1-09; REV 9-2009, f. 12-21-09, cert. ef. 1-1-10; REV 10-2012, f. 12-18-12, cert. ef. 1-1-13; REV 3-2013, f. & cert. ef. 3-28-13; Renumbered from 150-305.220(1), REV 47-2016, f. 8-13-16, cert. ef. 9/1/2016; REV 81-2016, f. 12-28-16, cert. ef. 1/1/2017; REV 73-2017, amend filed 12/22/2017, effective1/1/2018; REV 31-2018, amend filed 12/31/2018, effective 1/1/2019; REV 43-2020, amend filed 12/23/2020, effective 1/1/2021; REV 30-2022, amend filed 12/20/2022, effective 1/1/2023; REV 23-2023, amend filed 12/26/2023, effective 1/1/2024

Publications: Contact the Oregon Department of Revenue for information about how to obtain a copy of the publication referred to or incorporated by reference in this rule pursuant to ORS 183.360(2) and ORS 183.355(1)(b).

Statutory/Other Authority: ORS 305.100 & 305.220

Statutes/Other Implemented: ORS 305.220