Bill > A3395

Introduced Session

This bill increases the interest paid on overdue tax refunds subject to the State Uniform Tax Procedure Law and New Jersey Gross Income Tax Act. The purpose of this bill is to make the interest rate paid on tax refunds the same as the interest rate paid on tax deficiencies. While the interest rate imposed on back taxes accrues at three percentage points above the Federal Reserve's Bank Prime Loan Rate, the interest rate allowed on overdue refunds is paid without the benefit of a three point adjustment. In recent practice, this has meant that tax deficiency interest has been imposed at 6.5% and tax refund interest has been allowed at just 3.5%. This bill imposes a measure of equity and symmetry to the State's tax system by making the interest rate owed by tax collectors on refunds identical to the interest rate owed by taxpayers on deficiencies. The bill also includes emergency regulatory authority for the Director of the Division of Taxation to implement the bill.

AI Summary

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Jay Webber (R)*, 

Introduced, Referred to Assembly State and Local Government Committee (on 02/01/2024)

Official Document