October 10, 2007

Attention Business Editor:

For Immediate Release

For More Information: Bob Rogers, 515.281.5771, or Renee Mulvey, 515.242.6226

IOWA REVENUE DEPARTMENT SETS 2008 INTEREST RATE

DES MOINES - The Iowa Department of Revenue announces that the annual interest rate in 2008 will be 10.0 percent. The monthly interest rate will be 0.8 percent. The 2008 annual and monthly rates are the same interest rates that were imposed by the department for tax year 2007.

By statute, the department’s interest rate is based on the average prime rate charged by banks on short-term business loans between October 2006 and September 2007. The prime rate was constant in 11 of the 12 months during this period, with values similar to the average prime rate between October 2005 and September 2006. Therefore, there was no change in the department’s interest rate for the 2008 calendar year.

The department charges interest on taxes that are overdue; income, sales and withholding taxes are included. In addition, the department pays interest to taxpayers that file their individual income tax returns on time but do not receive their refunds by June 1. Interest is paid on late refunds of other taxes beginning on the first day of the second month following the due date.

-30-