Vermont § 3108 - Establishment of interest rate

§ 3108. Establishment of interest rate

• (a) Not later than December 15 of each year, the Commissioner shall establish an annual
  rate of interest applicable to unpaid tax liabilities and tax overpayments that shall
  be equal to the average prime rate charged by banks during the immediately preceding
  12 months commencing on October 1 of the prior year, rounded upwards to the nearest
  quarter percent. The rate established hereunder shall be effective on January 1 of
  the immediately following year. As used in this section, the term “prime rate charged
  by banks” shall mean the average predominate prime rate quoted by commercial banks
  to large businesses as determined by the Board of Governors of the Federal Reserve
  Board. (b) Whenever the Commissioner is authorized or directed to pay interest on an overpayment
  of any taxes, nevertheless no interest shall be paid on such overpayment: (1) where the Commissioner finds that such overpayment was made with the intention or
  expectation of receiving a payment of interest thereon and for no other reason; (2) for any period of time prior to 45 days after the date the return other than a corporate
  income tax return was due, including any extensions of time or 45 days after the return
  was filed, whichever is the later date, and with respect to corporate income tax returns,
  for any period of time prior to 90 days after the date the return was due or 90 days
  after the return was filed, whichever is the later date; (3) in the case of overpayments that result from carrybacks, for a period of time prior
  to 45 days after the end of the tax year in which the event giving rise to the carryback
  occurred; or (4) to the extent the overpayment is paid at the direction of the taxpayer to a municipality
  for credit against the taxpayer’s homestead property tax liabilities. (c)(1) For the purposes of subsection (b) of this section, a return shall not be treated
  as filed until it is filed in processible form, which means that the return is filed
  on a permitted form and the return contains the taxpayer’s name, address, identifying
  number, the required signature, and sufficient information, whether on the return
  or on required attachments, to permit the mathematical verification of the tax liability
  shown on the return. (2) The provisions of subsection (b) of this section shall apply notwithstanding any other
  provision of law to the contrary. (Added 1981, No. 191, (Adj. Sess.), § 1; amended 1983, No. 59, § 2, eff. April 22, 1983; 1999, No. 49, § 75, eff. June 2, 1999; 2005, No. 185 (Adj. Sess.), § 4, eff. Jan. 1, 2007; 2011, No. 143 (Adj. Sess.), § 15, eff. May 15, 2012; 2019, No. 51, § 2, eff. June 10, 2019; 2019, No. 175 (Adj. Sess.), § 28, eff. Oct. 8, 2020; 2021, No. 105 (Adj. Sess.), § 496, eff. July 1, 2022.)