§ 39-21-110.5 — Rate of interest to be fixed

Colorado § 39-21-110.5

• Jurisdiction: Colorado
• Title 39: Taxation
• Art.: Procedure and Administration

Text

(1) When interest is required or
permitted to be charged pursuant to this section on any underpayment,
nonpayment, extension of time for payment, or overpayment, or when interest is
required to be paid pursuant to section 8-20.5-104, in connection with an
application for reimbursement from the petroleum storage tank fund, such interest
shall be computed at the annual rate which has been established pursuant to this
section.

(2) Except as otherwise provided in subsection (4) of this section, the annual
rate of interest shall be the prime rate, as reported by the Wall Street Journal,
plus three points, rounded to the nearest full percent. In the event that more than
one rate is so reported, the highest rate shall be utilized.

(3) The commissioner of banking shall establish an adjusted annual rate of
interest based upon the computation specified in subsections (2) and (4) of this
section and rounded to the nearest full percent. The adjusted annual rate of
interest shall be so established by the commissioner of banking as of July 2, 1990,
to become effective January 1, 1991. Thereafter, on July 1, or the next succeeding
business day, of each year, the adjusted annual rate of interest shall be established
in the same manner, to become effective on January 1 of the next succeeding year.

(4) For refunds issued on or after January 1, 2004, the annual rate of interest
applicable to sections 39-21-110 and 39-22-622 shall be as follows:

(a) If the amount of the refund is less than five thousand dollars or if the
amount of the refund is equal to or greater than five thousand dollars but less than
ten percent of the taxpayer's net tax liability for the period for which the tax is paid,
the annual rate of interest shall be the prime rate, as reported by the Wall Street
Journal, plus three points, rounded to the nearest full percent. In the event that
more than one rate is so reported, the highest rate shall be utilized.

(b) (I) If the amount of the refund is equal to or greater than five thousand
dollars and the amount of the refund is equal to or greater than ten percent of the
taxpayer's net tax liability for the period for which the tax is paid, the annual rate of
interest shall be the prime rate, as reported by the Wall Street Journal, rounded to
the nearest full percent, except as provided in subparagraph (II) of this paragraph
(b). In the event that more than one rate is reported, the highest rate shall be
utilized.

(II) For any refund subject to the provisions of subparagraph (I) of this
paragraph (b), if the taxpayer demonstrates that the overpayment of tax
necessitating such refund was due to good cause as determined by the executive
director, the annual rate of interest shall be the prime rate, as reported by the Wall
Street Journal, plus three points, rounded to the nearest full percent. In the event
that more than one rate is so reported, the highest rate shall be utilized.

Legislative History

Source: L. 81: Entire section added, p. 1864, � 4, effective June 8. L. 90: (2) and (3) amended, p. 1728, � 1, effective April 5. L. 95: (1) amended, p. 420, � 11, effective July 1. L. 2003: (2) and (3) amended and (4) added, p. 2360, � 1, effective August 6. L. 2024: (1) amended, (HB 24-1349), ch. 423, p. 2905, � 14, effective December 17 (see editor's note).