Bill > HB959

This bill amends Pennsylvania's Tax Reform Code to clarify and standardize how interest is calculated and applied for tax overpayments and underpayments. The bill establishes new rules for interest on taxes due to the Commonwealth and on tax overpayments, including precise guidelines for when interest begins and ends, and how it is calculated. Specifically, the bill specifies that taxes due will bear simple interest from the date they become payable, with the interest rate determined annually based on the U.S. Treasury rate. For overpayments, the bill outlines detailed conditions under which interest will be paid, such as calculating interest from the date of overpayment, with exceptions for certain types of tax payments like withheld taxes and estimated taxes. The bill also provides that interest will not be paid on overpayments if a taxpayer intends to carry the refund forward to a future tax year, and sets the interest rate for overpayments at two percent less than the rate for underpayments. Additionally, the bill repeals certain sections of the Fiscal Code and ensures that any existing references to those repealed sections will now point to the new sections in the Tax Reform Code, with the changes taking effect 60 days after the bill's passage.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=959