Taxes, local; rate of interest capped at five percent annually, penalties. (HB461)

Introduced By

Del. Kathy Byron (R-Lynchburg)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Local taxes; interest and penalties.  Provides that the rate of interest set by localities that is charged on delinquent local taxes, and paid on refunds of local taxes, for the first year shall not exceed the "Underpayment Rate" established pursuant to 6621(a)(2) of the Internal Revenue Code. After the first year, the cap on the rate increases by two percent. Under current law, such interest rate shall not exceed the rate established pursuant to 6621(a)(2) of the Internal Revenue Code or 10 percent, whichever is greater. The bill also repeals a statute that automatically imposed an interest rate of 10 percent in any locality that does not enact an ordinance setting the interest rate. Finally, the bill authorizes the waiver of interest and penalty for good cause. The current law requiring the interest charged on delinquent taxes to be the same as the interest paid on tax refunds, is maintained. The bill contains technical amendments. Read the Bill »


02/06/2012: passed committee


01/10/2012Prefiled and ordered printed; offered 01/11/12 12103712D
01/10/2012Referred to Committee on Finance
01/20/2012Assigned Finance sub: #1
01/21/2012Impact statement from TAX (HB461)
02/01/2012Subcommittee recommends reporting with amendment(s) (7-Y 3-N)
02/06/2012Reported from Finance with amendment (17-Y 5-N) (see vote tally)
02/07/2012Read first time
02/08/2012Read second time
02/08/2012Committee amendment rejected
02/08/2012Floor substitute printed 12105158D-H1 (Byron)
02/08/2012Substitute by Delegate Byron agreed to 12105158D-H1
02/08/2012Engrossed by House - floor substitute HB461H1
02/09/2012Read third time and defeated by House (17-Y 80-N)
02/09/2012VOTE: DEFEATED (17-Y 80-N) (see vote tally)


This bill mentions Prince William.


This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 2 clips in all, totaling 11 minutes.