1. (a) Except as provided in subsections (b) and (c) of this section, a tax collector shall assess interest on unpaid tax from the due date to the date on which the tax is paid if a person who is required to estimate and pay digital advertising gross revenues tax, financial institution franchise tax, public service company franchise tax, or income tax under § 7.5-301, § 8-210(b), § 8-405(b), or § 10-902 of this article:

   1. (1) fails to pay an installment when due; or

   2. (2) estimates a tax that is:

      1. (i) less than 90% of the tax required to be shown on the return for the current taxable year; and
      2. (ii) less than 110% of the tax paid for the prior taxable year, reduced by the credit allowed under § 10-703 of this article.

2. (b) Interest may not be assessed on the underestimation of individual income tax if:

   1. (1) at least 90% of the individual's taxable income is also taxable by another state; and
   2. (2) the underestimation is of the county income tax only.
3. (c) A tax collector may not assess interest on unpaid individual income tax under subsection (a) of this section if the amount of unpaid income tax is less than one-half the amount specified in § 6654(e)(1) of the Internal Revenue Code.

Added by Acts 1988, c. 2, § 1, eff. Jan. 1, 1989. Amended by Acts 1988, c. 110, § 1; Acts 1991, c. 487, § 1; Acts 1992, 1st Sp. Sess., c. 1, § 6; Acts 1994, c. 578, § 1, eff. July 1, 1994; Acts 1994, c. 660, § 1, eff. July 1, 1994; Acts 1995, c. 3, § 1, eff. March 7, 1995; Acts 2003, c. 203, § 24, eff. July 1, 2003; Acts 2021, c. 37, § 2, eff. March 14, 2021.

Formerly Art. 81, §§ 130A, 312.