Amendment #305 to H3400

Interest Rate Parity for Taxpayers

[Sponsors] Ms. Peisch of Wellesley moves that the bill be amended by adding the following sections:

SECTION A.  The second paragraph of section 37 of chapter 62C of the General Laws, as appearing in the 2008 Official Edition, is hereby amended by striking out the fifth sentence.

SECTION B.  Section 40 of chapter 62C of the General Laws, as appearing in the 2008 Official Edition, is hereby amended by striking out subsection (a) and inserting in place thereof the following subsection:-

(a) If any refund of any tax, interest or penalties is made pursuant to sections 30, 31A, 36, 36A, 37 or 39 of this chapter, or sections 27 or 27A of chapter 65, or section 6 of chapter 65A, the state treasurer shall repay to the taxpayer the amount of such refund with interest thereon at the rate established under section 32 of this chapter, except as hereinafter provided, from the date of overpayment to a date, to be determined by the commissioner, preceding the date of the refund check by not more than 30 days, whether or not such refund check is accepted by the taxpayer after tender of such to the taxpayer. The acceptance of such check shall be without prejudice to any right of the taxpayer to claim any additional overpayment and interest thereon.

SECTION C.  Sections A and B shall be effective July 1, 2011.

SECTION D.  Subsection (a) of section 32 of chapter 62C of the General Laws, as appearing in the 2008 Official Edition, is hereby amended by inserting after the second sentence the following sentence:-

"However, notwithstanding any other provision, to the extent that, for any period, interest is payable on equivalent underpayments and overpayments by the same taxpayer of tax, the net rate of interest on such amounts shall be 0 for such period."

SECTION E.  Section D shall be effective retroactively to all open tax periods as of the date this act is approved.