October 2, 2013
IOWA REVENUE DEPARTMENT SETS 2014 INTEREST RATE
DES MOINES - The Iowa Department of Revenue announces that the annual interest rate in 2014 will be 5.0 percent. The monthly interest rate will be 0.4 percent. The 2014 annual and monthly rates are the same interest rates that were set by the Department for calendar year 2013.
By statute, the Department’s 2014 interest rate is based on the average prime rate charged by banks on short-term business loans between October 2012 and September 2013. The Iowa Code requires two percentage points to be added to this average, with the final value rounded to the nearest whole percent. The prime rate was 3.25% every day in this time period, as it was during the prior year resulting in no change for the Department’s interest rate for 2014.
The Department charges interest on taxes that are overdue, including income, sales, and withholding taxes. In addition, the Department pays interest to taxpayers who file their individual income tax returns on time but do not receive their refunds by June 1. Late refunds for other taxes are paid with interest as well.
The 2014 Department annual and monthly rates are effective beginning January 1, 2014 through December 31, 2014 for taxes which are overdue and for late refunds payable during that time.
The mission of the Iowa Department of Revenue is to serve Iowans and support state government by collecting all taxes required by law, but no more.
Contact: Victoria L. Daniels, Iowa Department of Revenue, 515.281.8450