§ 29-03 Unincorporated Business Tax.
RCNY § 29-03
(Chapter 5 of Title 11 of the Administrative Code).
(a)(1) Pursuant to § 11-537(f)(1) of Title 11 of the Administrative Code of the City of New York, the Commissioner of Finance is authorized to set the rate of interest to be imposed on underpayments and paid on overpayments of the City's unincorporated business tax. For underpayments which became due and overpayments made prior to February 24, 1983, the Commissioner of Finance was authorized to set a rate of interest which was not less than six percent per annum nor more than the rate of interest set by the Superintendent of Banks pursuant to § 14-a of the Banking Law. For underpayments or overpayments which remain or become due on or after February 24, 1983, the Commissioner of Finance is required to set a rate of interest as prescribed in paragraph (2) of this subdivision but not less than six percent per annum. Any such rate set by the Commissioner of Finance pursuant to the provisions of paragraph (2) shall apply to taxes, or any portion thereof, which remain or become due or overpaid on or after the date on which such rate becomes effective and shall apply only with respect to interest computed or computable for periods or portions of periods occurring in the period in which such rate is in effect. No interest shall be paid if the amount thereof is less than one dollar.
(2)On or before January 15 in each year, the Commissioner of Finance shall determine the one-year constant maturity yield index for United States treasury securities for the quarter-year ending on the immediately preceding December 31. Such index, rounded to the nearest one-tenth of a percentage point, shall be the rate of interest prescribed by this paragraph that shall be effective during the twelve-month period commencing on March 1 in such year. Provided, however, that on or before July 15 in each year, the Commissioner shall determine the one-year constant maturity yield index for United States treasury securities for the quarter-year ending on June 30 of such year. In any year in which the index for the quarter-year ending on June 30 differs by more than two percentage points from the index for the quarter-year ending on the immediately preceding December 31, then such index for the quarter-year ending on June 30, rounded to the nearest one-tenth of a percentage point, shall be the rate of interest prescribed by this paragraph for the six-month period commencing on September 1 in such year. Provided, further, that for the period commencing February 24, 1983 and ending on February 29, 1984, the rate of interest prescribed in accordance with the provisions of this paragraph shall be and is hereby set at 14% per annum, and such rate shall remain in effect unless a new rate is prescribed for the six-month period commencing on September 1, 1983 as provided in the preceding sentence. For purposes of this para graph, the one-year constant maturity yield index for United States treasury securities for any quarter-year shall be the average of such index for the three months constituting such quarter-year as such index is compiled by the United States Department of the Treasury, published by the Board of Governors of the Federal Reserve System of the United States, and expressed in terms of percentage interest per annum. For the purpose of the computation to the nearest one-tenth of a percentage point, a hundredth of a percentage point is to be disregarded unless it amounts to five hundredths of a percentage point or more, in which case the amount (determined without regard to the hundredth of a percentage point) shall be increased by one-tenth of a percentage point.
(b)Pursuant to the provisions of subdivision (a) above, the interest which shall be paid on overpayments pursuant to subdivision (a) of § 11-528 of the Administrative Code and which shall be added to underpayments of tax pursuant to subdivision (a) of § 11-524, recoveries of erroneous refunds pursuant to subdivision (j) of § 11-524, and underpayments of estimated tax pursuant to subdivision (c) of § 11-525 of the Administrative Code, or any portion thereof, which became due or overpaid prior to February 24, 1983 and which remains due or overpaid on or after February 24, 1983 is to be computed at the applicable rate in effect for the taxable year or other period to which the overpayment, underpayment or erroneous refund relates up to and including February 23, 1983 in accordance with the schedule described in this subdivision plus interest computed at the applicable rate or rates set forth in subdivision (c) of this section from February 24, 1983 to the date such underpayment of tax is paid or overpayment is refunded. The rates in effect prior to February 24, 1983 are as follows: For Taxable Periods: Rate Per Annum Beginning before June 1, 19786% Beginning on or after June 1, 19788.5% June 1, 198010.5% July 1, 198112% (c) Pursuant to the provisions of subdivision shall be paid on overpayments pursuant to subdivision (a) of § 11-528 of the Administrative Code, and which shall be added to underpayments of tax pursuant to subdivision (a) of § 11-524, recoveries of erroneous refunds pursuant to subdivision (j) of § 11-524, and underpayments of estimated tax pursuant to subdivision (c) of § 11-525 of the Administrative Code, or any portion thereof, which remains or becomes due or overpaid on or after February 24, 1983 is to be computed at the applicable rate or rates shown in the following schedule: Period Rate Per Annum February 24, 1983 through August 31, 198314% September 1, 1983 through February 29, 19849.2% March 1, 1984 through February 28, 198510% March 1, 1985 through February 28, 198610% March 1, 1986 through February 28, 19877.9% March 1, 1987 through February 29, 19886% March 1, 1988 through February 28, 19897.2% March 1, 1989 through February 28, 19908.5% (d) Except with respect to any addition to tax for failure to pay estimated tax, interest (or any other amount determined by reference to such interest) to be paid by the Commissioner of Finance or by the taxpayer is to be computed and compounded daily on or after September 1, 1983 on amounts (including interest) accruing or remaining unpaid on or after such date.
