Section 131.183 - Tax interest rate(1)(a) Except for the addition to tax required when an underpayment of estimated tax occurs under KRS 141.044 and 141.305, all taxes payable to the Commonwealth not paid at the time prescribed by statute shall accrue interest at the tax interest rate.(b)1.a. Except as provided by subparagraph 2 of this paragraph, the tax interest rate shall be equal to the adjusted prime rate charged by banks rounded to the nearest full percent as adjusted by subsection (2) of this section.b. The commissioner of revenue shall adjust the tax interest rate not later than November 15 of each year if the adjusted prime rate charged by banks during September of that year, rounded to the nearest full percent, is at least one (1) percentage point more or less than the tax interest rate which is then in effect. The adjusted tax interest rate shall become effective on January 1 of the immediately succeeding year.2. For additional tax billed in accordance with KRS 136.180(2), the tax interest rate shall be equal to the federal short-term rate applicable to each quarter of the period that begins on the date the protest was filed by the taxpayer under KRS 131.110 and ends on the due date of the tax as stated on the final tax bill. The federal short-term rate for each quarter shall be the federal short-term rate determined by the Secretary of the Treasury under Section 6621(b) of the Internal Revenue Code of 1986 or equivalent section in case of amendment. The two percent (2%) adjustment provided by subsection (2)(a) of this section shall not apply to the interest rate determined under this subparagraph.(2)(a)1. All taxes payable to the Commonwealth that have not been paid at the time prescribed by statute shall accrue interest at the tax interest rate as determined in accordance with subsection (1) of this section until May 1, 2008.2. Beginning on May 1, 2008, all taxes payable to the Commonwealth that have not been paid at the time prescribed by statute shall accrue interest at the tax interest rate as determined in accordance with subsection (1) of this section plus two percent (2%).(b)1. Interest shall be allowed and paid upon any overpayment as defined in KRS 134.580 in respect of any of the taxes provided for in Chapters 131, 132, 134, 136, 137, 138, 139, 140, 141, 142, 143, 143A, and 243 of the Kentucky Revised Statutes and KRS 160.613 and 160.614 at the rate provided in subsection (1) of this section until May 1, 2008.2. Beginning on May 1, 2008, interest shall be allowed and paid upon any overpayment as defined in KRS 134.580 at the rate provided in subsection (1) of this section minus two percent (2%).3. Effective for refunds issued after April 24, 2008, except for the provisions of KRS 138.351, 141.044(2), 141.235(3), and subsection (3) of this section, interest authorized under this subsection shall begin to accrue sixty (60) days after the latest of: a. The due date of the return;b. The date the return was filed;c. The date the tax was paid;d. The last day prescribed by law for filing the return; ore. The date an amended return claiming a refund is filed.(c) In no case shall interest be paid in an amount less than five dollars ($5).(d) No refund shall be made of any estimated tax paid unless a return is filed as required by KRS Chapter 141.(3) Effective for refund claims filed on or after July 15, 1992, if any overpayment of the tax imposed under KRS Chapter 141 results from a carryback of a net operating loss or a net capital loss, the overpayment shall be deemed to have been made on the date the claim for refund was filed. Interest authorized under subsection (2) of this section shall begin to accrue ninety (90) days from the date the claim for refund was filed.(4) No interest shall be allowed or paid on any sales tax refund as provided by KRS 139.536.(5) For purposes of this section, any addition to tax provided in KRS 141.044 and 141.305 shall be considered a penalty.Amended by 2022 Ky. Acts ch. 212,§ 51, eff. 4/14/2022.Amended by 2020 Ky. Acts ch. 91,§ 1, eff. 4/15/2020.Amended by 2015 Ky. Acts ch. HB-299,§ 11, eff. 3/25/2015.Amended by 2015 Ky. Acts ch. 67,§ 11, eff. 3/25/2015.Effective:3/24/2009
Repealed and reenacted 2009, Ky. Acts ch. 86, sec. 7, effective3/24/2009. -- Amended 2008, Ky. Acts ch. 132, sec. 8, effective 4/24/2008. --Amended 2006, Ky. Acts ch. 6, sec. 1, effective 3/6/2006. -- Amended 2005, Ky. Acts ch. 85, sec. 124, effective 6/20/2005. -- Amended 1998, Ky. Acts ch. 238, sec. 5, effective 4/1/1998. -- Amended 1992 Ky. Acts ch. 98, sec. 1, effective 7/14/1992; and ch. 264, sec. 1, effective 7/14/1992. -- Amended 1990 Ky. Acts ch. 423, sec. 5, effective 7/13/1990. -- Created 1982 Ky. Acts ch. 452, sec. 3, effective 7/1/1982.