Bill Requires Rhode Island to Pay Taxpayers Interest on Delayed Tax Refunds
May 25, 2010Several Rhode Island state congressmen have introduced a bill requiring the state to pay the same rate of interest after 60 days on tax refunds owed to taxpayers that the state assesses for overdue taxes.
“It’s patently unfair that the state can hold on to YOUR money for an indefinite period of time but can charge interest and penalties if you are just a few days late in paying them,” said Rep. John Loughlin (RI-1), who was joined by Reps. Jon Brien, Grace Diaz, Charlene Lima, Brian Newberry, and Peter Palumbo in introducing the bill.
“The state is using the taxpayers’ money to stay afloat while the taxpayers are worried about putting food on the table. We have to remember that government is here to serve our needs, not the other way around,” Loughlin added.
Several states, including North Carolina and New York, have delayed state tax refunds, in some cases up to six to eight months after tax returns are filed.