Bill > H4234

This bill, titled "Providing interest rate parity," aims to adjust how interest is calculated on tax refunds by amending Chapter 62C of the General Laws. Specifically, it removes the last sentence of a paragraph in Section 37 and replaces subsection (a) of Section 40. The key change in Section 40 is that when the state treasurer issues a refund for taxes, interest, or penalties, the interest will be paid at the rate established under subsection (a) of Section 32. This interest will be calculated from the date of overpayment up to a date determined by the commissioner, which will be no more than 30 days before the refund check is issued, regardless of whether the taxpayer accepts the check. The bill also clarifies that accepting the refund check does not prevent the taxpayer from claiming any additional overpayment or interest. This act is set to take effect on January 1, 2017.