(A) General rule. All overpayments of an eligible tax made to the local government shall bear simple interest from the date of overpayment of such eligible tax until the date of resolution.
(B) Interest rate. Interest on overpayments shall be paid at the same rate as the state is required to pay pursuant to § 806.1 of the Act of April 9, 1929 (Pub. Law 343, No. 176), known as the Fiscal Code (72 P.S. §§ 1 et seq.) As of December 1998, this interest rate is currently 9% annually (.00247% daily).
(C) Exceptions to payments of interest.
(1) No interest shall be paid if an overpayment is refunded or applied against any other eligible tax, interest, or penalty due to the local government within 75 days after the last date prescribed for filing the report or tax return of the tax liability or within 75 days after the date the return or report of the liability due is filed, whichever is later.
(2) Interest is not required to be paid on taxpayer overpayments of interest or a penalty(ies).
(D) Acceptance of refund check. The taxpayer’s acceptance of a refund check from the Tax Administrator or political subdivision shall not prejudice any right of the taxpayer to claim any additional overpayment and interest thereon. Tender or a refund check by the local government shall be deemed to be acceptance of the check by the taxpayer for purposes of this division (D).
(E) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
DATE OF OVERPAYMENT. The later of the date paid or the date the tax is deemed to have been overpaid as follows.
(a) Any tax actually deducted and withheld at the source shall be deemed to have been overpaid on the last day for filing the report for the tax period, determined without regard to any extension of time for filing.
(b) Any amount overpaid as estimated tax for the tax period shall be deemed to have been overpaid on the last day for filing the final report for the tax period, determined without regard to any extension of time for filing.
(c) An overpayment made before the last day prescribed for payment shall be deemed to have been paid on the last day.
(d) Any amount claimed to be overpaid with respect to which a lawful administrative review or appellate procedure is initiated shall be deemed to have been overpaid 60 days following the date of initiation of the review or procedure.
(e) Any amount shown not to be due on an amended income or earned income and net profits tax return shall be deemed to have been overpaid 60 days following the date of filing of the amended income tax return.
DATE OF RESOLUTION. The date the overpayment is refunded or credited as follows.
(a) For a cash refund, a date preceding the date of the refund check by not more than 30 days.
(b) For a credit for an overpayment:
1. The date of the Tax Administrator’s notice to the taxpayer of the determination of the credit; or
2. The due date for payment of the eligible tax against which the credit is applied, whichever first occurs. For a cash refund of a previously determined credit, interest shall be paid on the amount of the credit from a date 90 days after the filing of a request to convert the credit to a cash refund to a date preceding the date of the refund check by not more than 30 days, whether or not the refund check is accepted by the taxpayer after tender.
(Ord. 1999-3, passed 12-21-1999)