Vermont Issues Declared Rate for 2018

The Vermont Commissioner of Taxes issued a memo regarding the average prime loan rate charged by banks for 2018. This rate is the basis for determining whether a loan is a high-rate/high-point loan.

Title 32 V.S.A section 3108 requires the commissioner to set rates for calculating interest on underpayment and overpayment of tax liabilities. The annual rate for overpayments is rounded to the nearest quarter percent; the average prime loan for October 1, 2016 to September 30, 2017 was 3.91% so the annual rate for overpayment of tax is 4%.  The annual rate for underpayments is 200 basis points above the rate for over payments, in this case it is 6%.  Under Title 32 V.S.A section 3108(a) the monthly rate is rounded up to the nearest tenth which means the interest rate applicable to overpayments is 0.4% per month and 0.5% per month for underpayments.

These rates are effective January 1, 2018 and apply to interest that accrues in the 2018 calendar year.

 

CLA Bankers Advisory is an Authorized MERS Patron Member

Reminder: MERS Annual Reports must be submitted by December 31, 2017! Contact us today to be sure your Annual Report is complete and submitted by the deadline. We can help all institutions meet this requirement—those required to have an external third-party signature, and those permitted to submit with an internal review.

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Robert Harrison, JD, is a regulatory compliance consultant with Bankers Advisory. He is a graduate of Boston University and earned his juris doctor at the Boston University School of Law. Robert is admitted to the Bar in Massachusetts.

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