Rhode Island State Tax Refunds Delayed

by Kevin on May 28, 2010

One of my most popular posts is about Alabama State Tax refunds. There are over 9 pages of comments — full of people anxiously waiting for the state to send out their refund.

Thankfully many of the readers that have commented on that post are reporting they have received their refunds. It seems they are starting to get things under control at the Education Trust Fund.

I recently ran across another state that is delaying sending out tax refunds: Rhode Island. Here’s an overview from the article:

Overall, the state has delayed payment of about 53,000 individual income-tax refunds — totaling about $36.3 million — to make sure it has enough money to pay off state borrowings that come due in June, said Paul L. Dion, chief of the state Office of Revenue Analysis.

53,000 refunds is a lot, but I’m guessing it is less than the number of people in Alabama.

Rhode Island Tax Refund Legislation

So why am I mentioning Rhode Island?

It’s simple: the state is actually working to get refunds to taxpayers quickly, even to the point of changing a law.

The law in question is similar to Alabama’s law. If after a certain date refunds have not been sent out, then taxpayers get interest on the difference. The rate currently for Rhode Island is 3.25%.

What would the new rate be? 4%? 5%? Just enough to make it look like the state “cared” about the citizens?

Nope.

The new interest rate would be 18%.

Now that’s truly caring about your citizens. Here’s one more quote:

Meanwhile, several legislators on Tuesday introduced a bill (H 8167) that would force the state to pay interest sooner than required on delayed refunds.

One of the bill’s sponsors, state Rep. John J. Loughlin II, R-Tiverton, said, “It’s a fundamental issue of fairness.” Refunds represent “money that belongs to the people who earned it,” and the state should pay them promptly, said Loughlin, a candidate for Congress.

This may be a political ploy to try and get elected for Congress. (It doesn’t mention if the bill ever passed.) Nonetheless it would make me feel like my state legislators actually cared about balancing the budget and getting my tax refund to me.

Sadly, I don’t get that feeling in Alabama.

{ 1 comment… read it below or add one }

Amanda September 23, 2012 at 1:16 am

I filed before the deadline and here it is almost October and I still haven’t gotten my RI refund. It looks like I’m not getting it at all.

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