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TIP # 99 (C) 01-01
DATE ISSUED: 6/1/99

Corporate Income Tax and Franchise Tax Interest Rate is 8 Percent from
July 1, 1999 through December 31, 1999

Corporate Income/Franchise Tax:  Interest Rates Through 12/31/99

Florida law provides a floating rate of interest on corporate income tax and emergency excise tax underpayments and overpayments for taxable years ending on or after December 31, 1986.  The rate of interest for the period July 1, 1999 through December 31, 1999 is 8 percent.  The daily interest rate factor to be used for this 6month period is .000219178.  This rate is subject to change effective January 1, 2000.

For Taxable Years Ending On Or After December 31, 1986

The interest rates for all tax periods from January 1, 1987 through December 31, 1999 are:

Periods Underpayments & Overpayments *
1/1/87 - 6/30/88 8 percent
7/1/88 - 6/30/89 9 percent
7/1/89 - 6/30/90 11 percent
7/1/90 - 12/31/91 10 percent
1/1/92 - 6/30/92 9 percent
7/1/92 - 12/31/92 7 percent
1/1/93 - 12/31/94 6 percent
1/1/95 - 6/30/95 7 percent
7/1/95 - 12/31/95 8 percent
1/1/96 - 12/31/96 9 percent
1/1/97 - 12/31/97 8 percent
1/1/98 - 6/30/99 9 percent
7/1/99  12/31/99 8 percent

*Note:  For taxable years ending on or after December 31, 1986, no interest is allowed if an overpayment of tax is refunded or credited within three months after the date the taxpayer files a written notice with the Department.

For Taxable Years Ending Before December 31, 1986

For taxable years ending before December 31, 1986, the rates listed below remain constant and in effect for the applicable taxable year until the tax is paid or refunded.

Effective Date**   Underpayments   Overpayments
1/1/72 - 6/27/76   6 percent   6 percent
6/28/76 - 12/31/86   12 percent   6 percent

**Note:  An interest rate of 6 percent applies to any amount based on a corporate income tax return required to be filed prior to June 28, 1976.  For returns required to be filed after June 27, 1976, for taxable years ending before December 31, 1986, the interest rate of 12 percent applies to underpayments.  The 6 percent daily interest rate is .000164384 and the 12 percent daily interest rate is .000328767.

***Note:  For taxable years ending before December 31, 1986, no interest is allowed if the overpayment is refunded within nine months after the last date prescribed for filing the return or within nine months after the return was filed, whichever is later.

For more information

References:
s. 220.807, F.S. (1997)
ss. 214.14 and 214.43, F.S. (1985)
s. 12C-1.343, F.A.C.