Section 113 Overpayments

• Library: Tax Law 2009

When overpayment interest from the state is involved, entitlement must be contained in a statute. See State ex rel. Ellsworth Freight Lines, Inc. v. State Tax Comm’n of Mo., 651 S.W.2d 130 (Mo. banc 1983); Noranda Aluminum, Inc. v. Mo. Dep’t of Revenue, 599 S.W.2d 1 (Mo. 1980). For example, at one time the Sales Tax Law, §§ 144.010–144.525, RSMo 2000 and Supp. 2007, permitted no interest on refunds, even though interest was authorized by the Compensating Use Tax Law, §§ 144.600–144.761, RSMo 2000 and Supp. 2007. Int’l Bus. Machs. Corp. v. State Tax Comm’n, 362 S.W.2d 635 (Mo. 1962); Canteen Corp. v. Goldberg, 592 S.W.2d 754 (Mo. banc 1980).

As with the underpayment provisions (§11.112, supra),§ 144.190.2, RSMo Supp. 2007, and § 144.696, RSMo 2000, cross-reference § 32.065, RSMo 2000, for interest rates payable on sales and use tax overpayments (e.g.,refunds). But §§ 32.068 and 32.069, RSMo Supp. 2007, override and supplant § 32.065. Interest is still paid on refunds and overpayments of tax—but only if the refund or overpayment is delayed for more than 120 days. Section 32.069. The interest rate on refunds is computed under § 32.068. The interest rate on refunds for the first quarter of 2009 will decrease to 4% from 4.4%. The interest rate on refunds is the rate calculated every calendar quarter by the Missouri State...