State Taxation - Interest Rate Assessed on State Taxes. AS OF JANUARY 1, 2007, SIMPLE INTEREST WILL BE ASSESSED AT THE RATE OF EIGHT PERCENT ON DELINQUENT TAX PAYMENTS AND APPLIED TO ELIGIBLE CREDITS OR REFUNDS OF TAXES COLLECTED BY THE STATE.
Advice has been requested as to what rate of interest will be assessed on delinquent payments or applied to credits or refunds of taxes owing to the State of Nebraska, since the Tax Commissioner is required by law to determine the interest rate every two years.
For the two-year period beginning January 1, 2007, the rate of interest on delinquent payments of any taxes or special assessments owing to the State of Nebraska will change to eight percent per annum. The previous interest rate of six percent per annum had been in effect since January 1, 2003. The new eight percent will remain in effect through December 31, 2008.
Simple interest on taxes and special assessments is to be calculated by using each rate set out below for the portion of the period of the delinquency that such rate is in effect.
|
Period |
|
|
Interest Rate |
|
through 12-31-1992 |
|
|
14% |
|
1-1-1993 through 12-31-1994 |
|
|
7% |
|
1-1-1995 through 12-31-2002 |
|
|
9% |
|
1-1-2003 through 12-31-2006 |
6% |
||
|
1-1-2007 and after |
8% |
For any credit or refund of taxes or special assessments on which interest is to be determined, interest is to be calculated at seven percent through December 31, 1992, and for all subsequent periods at the same rates that are used for interest on delinquent payments.
APPROVED: November 15, 2006
Mary J. Egr Edson
State Tax Commissioner