{"data":{"id":"us-ky/krs-131.183","jurisdiction":"us-ky","citation":"KRS 131.183","heading":"Tax interest rate.","body":"(1) (a) Except for the addition to tax required when an underpayment of estimated\ntax occurs under KRS 141.044 and 141.305, all taxes payable to the\nCommonwealth not paid at the time prescribed by statute shall accrue interest\nat the tax interest rate.\n(b) 1. a. Except as provided by subparagraph 2. of this paragraph, the tax\ninterest rate shall be equal to the adjusted prime rate charged by\nbanks rounded to the nearest full percent as adjusted by subsection\n(2) of this section.\nb. The commissioner of revenue shall  adjust the tax interest rate not\nlater than November 15 of each year if the adjusted prime rate\ncharged by banks during September of that year, rounded to the\nnearest full percent, is at least one (1) percentage point more or\nless than the tax interest ra te which is then in effect. The adjusted\ntax interest rate shall become effective on January 1 of the\nimmediately succeeding year.\n2. For additional tax billed in accordance with KRS 136.180(2), the tax\ninterest rate shall be equal to the federal short -term rate applicable to\neach quarter of the period that begins on the date the protest was filed by\nthe taxpayer under KRS 131.110 and ends on the due date of the tax as\nstated on the final tax bill. The federal short -term rate for each quarter\nshall be the f ederal short -term rate determined by the Secretary of the\nTreasury under Section 6621(b) of the Internal Revenue Code of 1986\nor equivalent section in case of amendment. The two percent (2%)\nadjustment provided by subsection (2)(a) of this section shall no t apply\nto the interest rate determined under this subparagraph.\n(2) (a) All taxes payable to the Commonwealth that have not been paid at the time\nprescribed by statute shall accrue interest at the tax interest rate as determined\nin accordance with subsection (1) of this section plus two percent (2%).\n(b) 1. Interest shall be allowed and paid upon any overpayment as defined in\nKRS 134.580 at the rate provided in subsection (1) of this section minus\ntwo percent (2%).\n2. Except for the provisions of KRS 138.351, 141.044(2), and 141.235(3)\nand subsection (3) of this section, interest authorized under this\nsubsection shall begin to accrue sixty (60) days after the latest of:\na. The due date of the return;\nb. The date the return was filed;\nc. The date the tax was paid;\nd. The last day prescribed by law for filing the return; or\ne. The date an amended return claiming a refund is filed.\n(c) In no case shall interest be paid in an amount less than five dollars ($5).\n(d) A refund shall not be made of any estimated tax paid unless:\n1. a. An application is made by the taxpayer or officer authorized to\nmake the request on a form prescribed by the department; and\nb. It is determined that the estimated tax was paid to the department\nin error; or\n2. A return is filed as required by KRS Chapter 141.\n(3) If any overpayment of the tax imposed under KRS Chapter 141 results from a\ncarryback of a net capital loss, the overpayment shall be deemed to have been made\non the date the claim for refun d was filed. Interest authorized under subsection (2)\nof this section shall begin to accrue ninety (90) days from the date the claim for\nrefund was filed.\n(4) Interest shall not be allowed or paid on any sales tax refund as provided by KRS\n139.536.\n(5) For purposes of this section, any addition to tax provided in KRS 141.044 and\n141.305 shall be considered a penalty.","path":["KRS Chapter 131"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57909","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:22Z","sha256":"8ee46b278915cfd5b4e6415f41a1fafd06102b330f1f6c635e33d5ba75cc2cc5","source_id":"us-ky","stale":false,"prev":"us-ky/krs-131.182","next":"us-ky/krs-131.185"},"notice":"GroundRules: Original legal text. Not legal advice."}