72-16-461. Interest required when payment deferred -- rate. (1) If the time for payment of an amount of tax imposed by Title 72, chapter 16, part 3, is extended as provided in 72-16-452 interest on the 4% portion of such amount shall, in lieu of the annual rate provided by 72-16-441, be paid at the rate of 4%. For the purposes of this section, the amount of any additional tax that is prorated to installments payable under 72-16-459 shall be treated as an amount of tax payable in installments under that section.
     (2) For the purposes of this section, "4% portion" means the lesser of:
     (a) $345,800; or
     (b) the amount of the tax imposed by Title 72, chapter 16, part 3, which is extended as provided in 72-16-452.
     (3) If the amount of tax imposed by Title 72, chapter 16, part 3, that is extended exceeds the 4% portion, any payment of a portion of such amount shall, for the purpose of computing interest for periods after such payment, be treated as reducing the 4% portion by an amount that bears the same ratio to the amount of such payment as the amount of the 4% portion, determined without regard to this section, bears to the amount of tax that is extended as provided in 72-16-452.

     History: En. Sec. 27, Ch. 705, L. 1979.