The Vermont Commissioner of Taxes issued a memorandum setting forth the annual interest rates which will apply to tax underpayments and overpayments in 2019. The rate for overpayments will be 4.75% and the rate for underpayments will be 6.75%.
By statute, the overpayment rate is derived from the average predominate prime rate quoted by commercial banks to large businesses as determined by the Board of Governors of the Federal Reserve, rounded up to the nearest quarter of a percent. The underpayment rate is set at 200 basis points higher than the overpayment rate.
For more information and a copy of the memorandum, click here.