12-3.0015. Interest Applicable to Unpaid Tax Liabilities or Amounts Not Timely Refunded

(1) The provisions of Section 213.235, F.S., and this rule apply to all taxes listed in Section 213.05, F.S., except those taxes imposed by Chapter 220, F.S. The interest rate provisions of Rule 12C-1.343, F.A.C., apply to the taxes imposed by Chapter 220, F.S.

(2)(a) The interest rate applicable to tax payment deficiencies that arise for taxes due before January 1, 2000, is one percent per month, prorated daily, as provided in the applicable rules. This interest rate will apply as long as the deficiency continues.

(b) The interest rate will be determined pursuant to Section 213.235, F.S., for tax payment deficiencies that arise for taxes due on or after January 1, 2000.

(c) The interest rate which applies to a specific tax payment deficiency may fluctuate while the deficiency continues, due to the redetermination of the interest rate every six months pursuant to Section 213.235, F.S.

(d) The interest imposed by Section 213.255, F.S., will be calculated pursuant to Section 213.235, F.S., except that the interest rate applied to a refund cannot exceed 11 percent annually. The provisions of Section 213.255, F.S. and Rule Chapters 12-6 and 12-26, F.A.C., govern the circumstances under which interest is due from and paid by the Department on refunds.

(3)(a) The daily rate of interest computed pursuant to Section 213.235, F.S., and this rule shall use a year based on 365 days, and 366 days in a leap year.

(b) This daily rate will be carried out to nine decimal places.

(4)(a) The interest rate determined pursuant to Section 213.235, F.S., is subject to change on January 1st and July 1st of each year.

(b) The applicable interest rate for any 6-month period can be obtained by any of the following methods:

1. Accessing the Department’s website at www.myflorida.com/dor/taxes.

2. Calling Taxpayer Services during regular business hours at 1(800) 352-3671.

(5) The following examples are intended to help taxpayers understand how these interest rate provisions apply:

(a) The taxpayer owed $1,000 with his November 1999 sales and use tax return due 12/20/1999. Interest for sales and use tax returns due through 12/31/1999 is at the rate of 1 percent per month (which equals a daily interest rate of .000328767), and for any portion less than a month, a daily interest factor of .000328767 is applied. Assuming the taxpayer filed the return and paid the tax on 8/10/2000, interest would be calculated as follows:

		CALENDAR		TOTAL
PERIOD	TAX DUE	PERIOD	RATE	INTEREST DUE
12/21/99-7/20/00	$1,000	7 months	1% per mon.	$70.00
7/21/00-8/10/00	$1,000	21 days	.000328767 per day	$6.90
Total Interest Due				$76.90

(b) The taxpayer owed $1,000 with her February 2000 sales and use tax return due 3/20/2000. The taxpayer filed the return and paid the tax on 8/01/2000. Assuming an interest rate of 8 percent for the 1/01/2000 through 6/30/2000 period, and an interest rate of 9 percent for the 7/01/2000 through 12/31/2000 period, interest would be calculated as follows:

		NUMBER	DAYS IN		TOTAL
PERIOD	TAX DUE	OF DAYS	YEAR	RATE	INTEREST DUE
3/21/00-6/30/00	$1,000	102	366	8% per year	$22.29
7/01/00-8/01/00	$1,000	32	366	9% per year	$7.87
Total Interest Due					$30.16

(c) The taxpayer underpaid intangible tax by $500 on 6/30/2000. The taxpayer paid the additional tax due on 11/15/2000. Assuming an interest rate of 9 percent for the 7/01/2000 through 12/31/2000 period, interest would be calculated as follows:

		NUMBER	DAYS IN		TOTAL
PERIOD	TAX DUE	OF DAYS	YEAR	RATE	INTEREST DUE
7/01/00-11/15/00	$500	138	366	9% per year	$16.97

Rulemaking Authority 213.06(1) FS. Law Implemented 213.235, 213.255 FS. History–New 4-2-00, Amended 1-25-12.