WILLIAM DONALD SCHAEFER, Governor Ch. 569
13-604.

(a)   [(1)] The rate of interest for each month or fraction
of a month is the percent equal to one-twelfth of the annual
interest rate that the Comptroller sets for the calendar year
under [paragraph (2)] SUBSECTION (B) of this [subsection]
SECTION.

[(2)] (B) On or before October 1 of each year, the
Comptroller shall set the annual interest rate for the next
calendar year as the percent, rounded to the nearest whole
number, that is at the percent that equals:

[(i)] (1) for moneys owed to the State, the
greater of:

[1.] (I) 12%; or

[2.] (II) 2 percentage points above the
average prime rate of interest quoted by commercial banks to
large businesses during the State's previous fiscal year, based
on determination by the Board of Governors of the federal reserve
bank; and

[(ii)] (2) for refunds, 2 percentage points
above the average investment yield on State money for the State's
previous fiscal year, as published in the Treasurer's Annual
Report.

[(b) The rate of interest on a motor fuel tax refund is 6%
a year.]

13-701.

(b)   (1) If a person fails to pay financial institution
franchise tax [or], income tax, OR TOBACCO TAX when required
under this article, the tax collector shall assess a penalty not
exceeding 25% of the unpaid tax.

(2) If a person fails to file a [return and pay]
motor carrier tax RETURN or motor fuel tax RETURN when required
under this article, the Comptroller shall assess [the greater of:

(i) the] A penalty [under subsection (a) of
this section; and

(ii) $10] NOT EXCEEDING $25.

[(3) If a person willfully fails to pay tobacco tax
when required under this article, the Comptroller may assess a
penalty not exceeding 25% of the unpaid tax.]

- 3967 -