Information Release

ET 2005-01/PP 2005-02 - Property and Estate Taxes Have New Interest Rate - September, 2005

R.C. 5703.47 requires the Tax Commissioner to determine, on October 15th of each year, the federal short-term interest rate. The federal short-term rate rounded to the nearest whole percent, plus three per cent, is the rate of interest that accrues during the following calendar year for all tax and miscellaneous statutes that require interest to be computed at the rate per annum required by R.C. 5703.47.

Through June 30, 2005, R.C. 5719.041 (personal property  tax) and 5731.23 (estate tax) required interest to be computed at the rate per annum required by R.C. 5703.47, which includes the three per cent addition. Thus the interest rate from January 1, 2005 to June 30, 2005 will be based on a calendar year rate of five (5) percent.  Effective July 1, 2005, resulting from changes made to those sections in Am. Sub. H.B. 66, these two taxes now require interest to accrue at the federal short-term interest rate without the three per cent addition. Accordingly, any portion of the personal property tax or estate tax that is subject to interest from July 1, 2005 to December 31, 2005 will accrue interest based on a calendar year rate of two (2) percent. 

By clicking here, the revised interest table can be obtained.  Please note that the interest rate for calendar year 2006 pursuant to R.C. 5703.47 will be issued October 15 (journalized October 17th due to the 15th being a Saturday). 

County Auditors will be issued a revised County Auditor Bulletin covering these interest rate changes by September 15, 2005.