Vermont – Interest Rate Increased for Underpayments and Decreased for Overpayments

SALT Report 1955 – The Vermont Department of Taxes released a memo regarding the interest rate that will be applied to underpayments and overpayments of taxes.  The interest rate that will be imposed on underpayments will increase from 4.8% annually or 0.4% per month to 5.6% annually or 0.5% per month for the 2013 calendar year. The interest rate for overpayments will decrease from 4.8% annually or 0.4% per month to 3.6% annually or 0.3% per month for the 2013 calendar year.

Additionally, Act 143 Laws 2012 changed the method the Department will use to determine the interest rate on underpayments.  Prior to January 1, 2013 the interest rate on underpayments is equal to the interest rate on overpayments.  However, effective January 1 2013, the interest rate on underpayments will be equal to the interest rate on overpayments plus an additional 200 basis points.

For Further Information:

Vermont Department of Taxes – 2013 Interest Rates Memorandum