The purpose of this information release is to advise taxpayers and tax preparers of changes to the interest rates, established by RSA 21-J:28, for calendar year 2008.  Questions should be directed to the Central Tax Services Unit, at (603) 271-2191.

The annual underpayment and overpayment interest rates for calendar year 2008 are established by RSA 21-J:28.  Effective January 1, 2008 through December 31, 2008, the State of New Hampshire interest rates, applicable on taxes administered by the Department of Revenue Administration, will be 10 percent for underpayments and 7 percent for overpayments.  The interest rates listed below apply to the number of days during the period that the payment remains unpaid or the refund is owed.

The New Hampshire statutes governing interest rates were amended in 1995 [CH 268] to require that starting on January 1, 1998, and determined annually thereafter, the New Hampshire interest rates would be based upon the rates set by the federal government under Internal Revenue Code § 6621(a)(2).  RSA 21-J:28, II provides that the “annual underpayment rate” (the interest rate on tax due) is tied to the underpayment rate specified in the Internal Revenue Code of 1986, as in effect on the September 1 immediately preceding such calendar year, plus 2 percentage points.  RSA 21-J:28, III provides that the “annual overpayment rate” (the interest rate paid on refunds) is to be 3 percentage points less than the rate set in RSA 21-J:28, paragraph II.  The underpayment rate specified in the Internal Revenue Code § 6621(a)(2) for the period from July 1, 2007 through September 30, 2007 is 8 percent.  The rates for 2008 are the same as those for 2007.

            Period                          Interest Rate for                       Interest Rate for

                                               Underpayment of Tax             Overpayment of Tax

            1/1/2008 -12/31/2008             10 percent                                 7 percent

            1/1/2007 -12/31/2007             10 percent                                 7 percent

            1/1/2006 -12/31/2006               8 percent                                 5 percent

            1/1/2005 -12/31/2005               6 percent                                 3 percent

            1/1/2004 -12/31/2004               7 percent                                 4 percent

            1/1/2003 -12/31/2003               8 percent                                 5 percent

            1/1/2002 -12/31/2002               9 percent                                 6 percent

            1/1/2001 -12/31/2001              11 percent                                8 percent

            1/1/1999 -12/31/2000              10 percent                                7 percent

            1/1/1998 -12/31/1998              11 percent                                8 percent

            Prior to 1/1/1998                     15 percent                              10 percent

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