Or. Admin. Code § 150-311-0800

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

Section 150-311-0800 - Calculation of Interest on Refund

(1) Interest on refunds is based on the method the taxpayer used to pay taxes. Interest is calculated from the first trimester due date if full payment, or two-thirds payment, was made with a discount on or before November 15. If payments were made on the installment basis, interest is calculated on the amount overpaid as of each trimester due date or date of payment, whichever is later. Refund interest accrues at the rate specified in ORS 311.812(3) until paid.

(2) When the taxpayer pays in full, with discount, on or before the first trimester due date, interest is calculated on the amount overpaid from that date.

Example: The 2000-01 tax statement for $4,000 was corrected to $400 resulting in an overpayment of tax. The original tax less discount was paid in full October 17, 2000. The refund on the corrected tax is issued February 19, 2001 and includes interest calculated from the due date, November 15, 2000, to the date of refund, February 19, 2001. [Table not included. See ED. NOTE.]

(3) When the taxpayer chooses to pay in trimesters, interest is calculated on the amount overpaid on each trimester due date when there is no balance on the account. When there is a balance on the account in the year for which overpayment occurred, the overpayment is credited to the trimester(s) still outstanding. No refund interest is paid until the overpayment exceeds the total amount of corrected tax.

(a) When trimester payments are made timely, the overpayment is credited as follows:

Example: The 2000-01 tax statement for $3,000 was corrected to $2,400. Two trimester payments were made timely. The correction is made March 15, 2001. [Table not included. See ED. NOTE.]

(b) When two trimester payments are made after the due date and accrued interest has been calculated, the overpayment is credited as follows:

Example: The 2000-01 tax statement for $3,000 was corrected to $2,400. The first trimester payment was made November 20, 2000; the second trimester payment was made February 20, 2001; the account is corrected March 20, 2001. [Table not included. See ED. NOTE.]

(4) When timely payment for the first trimester is sufficient to pay two-thirds or more of the corrected tax, then the corresponding discount must be credited.

(a) When all three trimester payments have been made timely, the overpayment is credited as follows:

Example: The 2000-01 tax statement for $3,000 was corrected to $400. All trimester payments were made on or before the due dates. The correction is made June 15, 2001. The original payment for the first trimester covers the full corrected tax so the three percent discount is granted. [Table not included. See ED. NOTE.]

(b) When two trimester payments have been made timely, the overpayment is credited as follows:

Example: The 2000-01 tax statement for $3,000 was corrected to $300. Two trimester payments were made timely. The correction was made and the refund was issued on March 15, 2001. The original payment for the first trimester covered the full corrected tax so the three percent discount was granted. [Table not included. See ED. NOTE.]

(c) When the first trimester payment is made timely, the overpayment is credited as follows:

Example: The 2000-01 tax statement for $2,400 was corrected to $1,200. The first trimester payment was made timely. The correction was made on January 15, 2001. Since the original payment for the first trimester payment covers the corrected first and second trimester payments, a 2% discount is calculated on the full original trimester payment. [Table not included. See ED. NOTE.]

(5) Refund interest is not paid on an overpayment of delinquent interest. Refund interest accrues only on the tax principal overpaid. Any difference between the original late payment interest and the correct late payment interest is also included in the amount to be refunded.

Example: The 2000-01 tax statement for $4,000 was corrected to $400. Full payment was made November 20, 2000. The refund was made March 19, 2001. [Table not included. See ED. NOTE.]

Or. Admin. Code § 150-311-0800

RD 9-1989, f. 12-18-89, cert. ef. 12-31-89; REV 3-2001, f. 7-31-01, cert. ef. 8-1-01; Renumbered from 150-311.812(3), REV 27-2016, f. 8-12-16, cert. ef. 9/1/2016; REV 16-2017, f. & cert. ef. 6/15/2017

Table referenced is not included in rule text. Click here for PDF copy of table.

Stat. Auth.: ORS 305.100

Stats. Implemented: ORS 311.812