Bill > S2044

This bill modifies the Massachusetts General Laws to equalize the interest rate charged by the Department of Revenue (DOR) when taxpayers do not pay their taxes by the statutory due date. Specifically, the bill changes the interest rate calculation from its current method to a new formula that ties the rate to the federal short-term rate (determined under section 6621(b) of the Internal Revenue Code) and adds 2 percentage points to that rate. The interest will be computed as simple interest, which means the interest is calculated only on the principal amount, rather than compounding over time. By linking the interest rate to the federal short-term rate, the bill ensures that the DOR's interest rate will automatically adjust based on federal tax rate changes, potentially providing a more dynamic and responsive approach to calculating late payment penalties.

Budget and Finance

https://malegislature.gov/Bills/194/S2044