by Raquel M. Mazarin
Each year, the Ohio Tax Commissioner must certify the interest rate that will apply to overdue taxes in the following calendar year. The interest rate is calculated by adding three percentage points to the federal short-term rate (rounded to the nearest percentage point) that was in effect during July of the current year. Based on this formula, the tax commissioner has determined that the rate will be 5% for calendar year 2023. This rate applies to underpayments and overpayments of the commercial activity tax, personal income tax, sales and use tax, and most other taxes. Solely for purposes of tangible personal property tax and estate tax, the interest rate for calendar year 2023 is 2%. (Ohio Tax Commissioner Journal Entry No. 10/15/2022: Interest Rate Certification for Calendar Year 2023, 10/15/2022.)
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