WILLIAM DONALD SCHAEFER, Governor                   Ch. 736

CHAPTER 736

(House Bill 1324)

AN ACT concerning

Unpaid Taxes and Refunds - Rate of Interest

FOR the purpose of altering the rate of interest charged for
certain moneys due to the State; and altering the rate of
interest paid on certain refunds.

BY repealing and reenacting, with amendments,

Article 81 - Revenue and Taxes

Section 204 and 218

Annotated Code of Maryland

(1980 Replacement Volume and 1986 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 81 - Revenue and Taxes

204.

(a)  For purposes of this article, Article 48A, § 61,
Article 56, § 137, Article 62A, and § 9-119(d) of the State
Government Article, the applicable rate of interest [per] FOR
EACH month or [fraction] PART of a month [shall be as follows:

(1)  For the 6 months beginning July 1, 1982,
one-twelfth of the adjusted annual rate of interest established
by the Secretary of the Treasury pursuant to § 6621 of the
Internal Revenue Code of 1954, and in effect on July 1, 1982.

(2)  For all months beginning January 1, 1983,
one-twelfth of the adjusted annual rate of interest established
by the Secretary of the Treasury pursuant to § 6621 of the
Internal Revenue Code of 1954, and in effect on each respective
January 1 for the succeeding 12 months.

(b)  However, the applicable rate of interest may not be in
excess of 1.25 percent nor be less than 1 percent.] IS
ONE-TWELFTH OF THE ANNUAL INTEREST RATE ESTABLISHED BY THE
COMPTROLLER FOR THE CALENDAR YEAR UNDER SUBSECTION (B) OF THIS
SECTION.

(B) NOT LATER THAN OCTOBER 1 OF EACH YEAR, THE COMPTROLLER
SHALL SET THE ANNUAL INTEREST RATE FOR THE FOLLOWING CALENDAR
YEAR AS THE PERCENT, ROUNDED TO THE NEAREST WHOLE NUMBER, THAT IS

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