Home » New York Tax Interest Rates Unchanged for Third Quarter 2017

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The New York Department of Taxation and Finance has announced the interest rates on overpayments and underpayments of New York taxes for the period July 1, 2017, through September 30, 2017.

The overpayment rate remains at 3% for taxes on alcoholic beverages, authorized combative sports, beverage container deposits, corporate franchise (income), diesel motor fuel, estates, generation-skipping transfers, hazardous waste, highway use, medical marihuana, personal income, New York City taxicab and hail vehicle trips, metropolitan commuter transportation mobility (MCTM), mortgage recordings, motor fuels, petroleum businesses, real estate transfers, sales and use, waste tires, and withholding.

The underpayment rate is unchanged at 8% for taxes on alcoholic beverages, authorized combative sports, beverage container deposits, cigarettes, corporate franchise (income), diesel motor fuel, highway use, medical marihuana, New York City taxicab and hail vehicle trips, mortgage recordings, motor fuels, petroleum businesses, real estate transfers, tobacco products, waste tires, and withholding. The underpayment rate also remains at 7.5% for estate, generation-skipping transfer, personal income, and MCTM taxes.

Under §527(f) of the Tax Law, the interest rates relating to the fuel use tax are set pursuant to the International Fuel Tax Agreement (IFTA). The annual IFTA interest rate is 6%, effective January 1, 2017 (http://www.iftach.org/).

The underpayment rate for sales and use tax remains at 14.5%, and the underpayment rate for the tax on hazardous waste is unchanged at 15%.

The interest rate on sales tax assessments or late payments is required to be set at 14.5% for the third quarter of 2017. However, if the commissioner determines that the failure to pay or delay in payment is due to reasonable cause and not willful neglect, the commissioner may impose interest at the corporate franchise (income) tax late payment and assessment rate. That rate is 8% for the third quarter of 2017.

There are a number of state and local governmental bodies that have interest rates tied to the overpayment and underpayment rates contained in either §697(j) (Income Tax) or §1096(e) (Corporation Tax) of the Tax Law. For purposes of §§697(j) and 1096(e) of the Tax Law, the overpayment rate for this period is 3%. For purposes of §697(j) of the Tax Law, the underpayment rate for this period is 7.5%. For purposes of §1096(e) of the Tax Law, the underpayment rate for this period is 8%.

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