Penalty and Interest

Penalty and interest rates for various tax types. Scroll down to find the appropriate rate.

  • Clean Drinking Water Fee - KSA 82a-954(e) & KSA 79-3615(d)
  • Consumer’s Compensating Use Tax - KSA 79-3706(e)
  • Corporate Income - KSA 79-1110 & KSA 79-3228
  • Cigarette & Tobacco - KSA 79-3392 & KSA 79-3615(d)
  • Dry Cleaning Environmental Surcharge - KSA 65-34,150 & KSA 79-3615(d)
  • Dry Cleaning Solvent Fee - KSA 65-34,151 & KSA 79-3615(d)
  • Fiduciary Income - KSA 79-3228
  • Individual Income - KSA 79-3228
  • Liquor Enforcement - KSA 79-4105 & KSA 79-3615(d)
  • Liquor Drink - KSA 79-41a03a
  • Privilege - KSA 79-1110 & KSA 79-3228
  • Retailers’ Compensating Tax - KSA 79-3706(e)
  • Retailers’ Sales Tax - KSA 79-3615(d)
  • Vehicle Rental Excise - KSA 79-5117(b) & KSA 79-3615(d)
  • Water Protection Fee - KSA 82a-954(e) & KSA 79-3615(d)
Interest:

Interest is computed on the amount of tax due if payment is received after the due date. Interest is not computed on penalty or on interest itself. The interest rate for various periods is as follows:

  • 01/01/2013 to 12/31/2014 - 4 percent (.333 percent per month or fraction thereof)
  • 01/01/2010 to 12/31/2012 - 5 percent (.417 percent per month or fraction thereof)
  • 01/01/2009 to 12/31/2009 - 6 percent (.5 percent per month or fraction thereof)
  • 01/01/2007 to 12/31/2008 - 9 percent (.75 percent per month or fraction thereof)
  • 01/01/2006 to 12/31/2006 - 7 percent (.583 percent per month or fraction thereof)
  • 01/01/2005 to 12/31/2005 - 5 percent (.417 percent per month or fraction thereof)
  • 01/01/2004 to 12/31/2004 - 6 percent (.5 percent per month or fraction thereof)
  • 01/01/2003 to 12/31/2003 - 7 percent (.583 percent per month or fraction thereof)
  • 01/01/2002 to 12/31/2002 - 8 percent (.667 percent per month or fraction thereof)
  • 01/01/2001 to 12/31/2001 - 10 percent (.833 percent per month or fraction thereof)
  • 01/01/1999 to 12/31/2000 - 9 percent (.75 percent per month or fraction thereof)
  • 01/01/1998 to 12/31/1998 - 10 percent (.833 percent per month or fraction thereof)
  • 01/01/1995 to 12/31/1997 - 12 percent (1 percent per month or fraction thereof)
  • 01/01/1950 to 12/31/1994 - 18 percent (1.5 percent per month or fraction thereof)

Penalty for tax years ending after 12/31/01: Penalty will be computed at the rate of 1 percent per month on the balance due with a maximum penalty not to exceed 24 percent (maximum 10 percent penalty on field audits).

Penalty for tax years 2001 and prior: Penalty is computed at the rate of 10 percent on the amount of tax due if payment is received after the due date but within six months of the original due date. Penalty is computed at 25 percent on the tax balance due if the payment is received after six months of the original due date. Penalty is not computed on interest or penalty itself.


Withholding - KSA 79-32,107(f), KSA 79-32, 107(a), KSA 79-3228

Interest: Interest is computed on the amount of tax due if payment is received after March 1 of the following year (interest does not start until after the due date of the annual return, Form KW-3, March 1). Interest is not computed on penalty or on interest itself. The interest rate for various periods is as follows:

  • 01/01/2013 to 12/31/2014 - 4 percent (.333 percent per month or fraction thereof)
  • 01/01/2010 to 12/31/2012 - 5 percent (.417 percent per month or fraction thereof)
  • 01/01/2009 to 12/31/2009 - 6 percent (.5 percent per month or fraction thereof)
  • 01/01/2007 to 12/31/2008 - 9 percent (.75 percent per month or fraction thereof)
  • 01/01/2006 to 12/31/2006 - 7 percent (.583 percent per month or fraction thereof)
  • 01/01/2005 to 12/31/2005 - 5 percent (.417 percent per month or fraction thereof)
  • 01/01/2004 to 12/31/2004 - 6 percent (.5 percent per month or fraction thereof)
  • 01/01/2003 to 12/31/2003 - 7 percent (.583 percent per month or fraction thereof)
  • 01/01/2002 to 12/31/2002 - 8 percent (.667 percent per month or fraction thereof)
  • 01/01/2001 to 12/31/2001 - 10 percent (.833 percent per month or fraction thereof)
  • 01/01/1999 to 12/31/2000 - 9 percent (.75 percent per month or fraction thereof)
  • 01/01/1998 to 12/31/1998 - 10 percent (.833 percent per month or fraction thereof)
  • 01/01/1995 to 12/31/1997 - 12 percent (1 percent per month or fraction thereof)
  • 01/01/1950 to 12/31/1994 - 18 percent (1.5 percent per month or fraction thereof)

Penalty:

  • Penalty for tax years ending after 12/31/01 (withholding returns for periods that begin Jan. 1, 2002) the penalty is due at the rate of 15 percent on the underpayment if this return is filed and tax paid after the due date and prior to March 1, of the following year (2003). If filed on or after March 1 following the tax year, an additional penalty is due at the rate of one percent per month up to a maximum of 24 months. This penalty is in addition to the initial 15 percent penalty for a maximum penalty of 39 percent .
  • Penalty for tax years ending 12/31/01 or before - 15 percent penalty on late payment of tax due on KW-5 if filed after the due date and before March 1 of the following year. An additional 10 percent penalty (25 percent total) is due on late payment of tax if paid after March 1 of the following year and before Sept. 1, and an additional 25 percent penalty (40 percent total) if tax is paid on or after Sept. 1.

Tire Excise Tax - KSA 65-3424e
Transient Guest Tax - KSA 12-1694b

Interest: Interest is computed on the amount of tax due if payment is received after the due date. Interest is not computed on penalty or on interest itself. The interest rate for various periods is as follows:

  • 01/01/2013 to 12/31/2014 - 4 percent (.333 percent per month or fraction thereof)
  • 01/01/2010 to 12/31/2012 - 5 percent (.417 percent per month or fraction thereof)
  • 01/01/2009 to 12/31/2009 - 6 percent (.5 percent per month or fraction thereof)
  • 01/01/2007 to 12/31/2008 - 9 percent (.75 percent per month or fraction thereof)
  • 01/01/2006 to 12/31/2006 - 7 percent (.583 percent per month or fraction thereof)
  • 01/01/2005 to 12/31/2005 - 5 percent (.417 percent per month or fraction thereof)
  • 01/01/2004 to 12/31/2004 - 6 percent (.5 percent per month or fraction thereof)
  • 01/01/2003 to 12/31/2003 - 7 percent (.583 percent per month or fraction thereof)
  • 01/01/2002 to 12/31/2002 - 8 percent (.667 percent per month or fraction thereof)
  • 01/01/2001 to 12/31/2001 - 10 percent (.833 percent per month or fraction thereof)
  • 01/01/1999 to 12/31/2000 - 9 percent (.75 percent per month or fraction thereof)
  • 01/01/1998 to 12/31/1998 - 10 percent (.833 percent per month or fraction thereof)
  • 01/01/1995 to 12/31/1997 - 12 percent (1 percent per month or fraction thereof)
  • 01/01/1950 to 12/31/1994 - 18 percent (1.5 percent per month or fraction thereof)

Penalty: Computed at the rate of 10 percent on the amount of tax due if payment is received after the due date but within 60 days of the original due date. Penalty is computed at 25 percent on the tax balance due if the payment is received after 60 days of the original due date. Penalty is not computed on interest or penalty itself.


Bingo - KSA 79-4705

Interest: Interest is computed on the amount of tax due if payment is received after the due date. Interest is not computed on penalty or on interest itself. The interest rate for various periods is as follows:

  • 01/01/2013 to 12/31/2014 - 4 percent (.333 percent per month or fraction thereof)
  • 01/01/2010 to 12/31/2012 - 5 percent (.417 percent per month or fraction thereof)
  • 01/01/2009 to 12/31/2009 - 6 percent (.5 percent per month or fraction thereof)
  • 01/01/2007 to 12/31/2008 - 9 percent (.75 percent per month or fraction thereof)
  • 01/01/2006 to 12/31/2006 - 7 percent (.583 percent per month or fraction thereof)
  • 01/01/2005 to 12/31/2005 - 5 percent (.417 percent per month or fraction thereof)
  • 01/01/2004 to 12/31/2004 - 6 percent (.5 percent per month or fraction thereof)
  • 01/01/2003 to 12/31/2003 - 7 percent (.583 percent per month or fraction thereof)
  • 01/01/2002 to 12/31/2002 - 8 percent (.667 percent per month or fraction thereof)
  • 01/01/2001 to 12/31/2001 - 10 percent (.833 percent per month or fraction thereof)
  • 01/01/1999 to 12/31/2000 - 9 percent (.75 percent per month or fraction thereof)
  • 01/01/1998 to 12/31/1998 - 10 percent (.833 percent per month or fraction thereof)
  • 01/01/1995 to 12/31/1997 - 12 percent (1 percent per month or fraction thereof)
  • 01/01/1950 to 12/31/1994 - 18 percent (1.5 percent per month or fraction thereof)

Penalty: Computed at the rate of 25 percent on the amount of tax due if payment is received after the due date.


Liquefied Petroleum - KSA 79-3495
Motor Vehicle Fuel - KSA 79-3410
Special Fuel - KSA 79-3410

Interest: Interest is computed on the amount of tax due if payment is received after the due date. Interest is not computed on penalty or on interest itself. The interest rate for various periods is as follows:

  • 01/01/2013 to 12/31/2014 - 4 percent (.333 percent per month or fraction thereof)
  • 01/01/2010 to 12/31/2012 - 5 percent (.417 percent per month or fraction thereof)
  • 01/01/2009 to 12/31/2009 - 6 percent (.5 percent per month or fraction thereof)
  • 01/01/2007 to 12/31/2008 - 9 percent (.75 percent per month or fraction thereof)
  • 01/01/2006 to 12/31/2006 - 7 percent (.583 percent per month or fraction thereof)
  • 01/01/2005 to 12/31/2005 - 5 percent (.417 percent per month or fraction thereof)
  • 01/01/2004 to 12/31/2004 - 6 percent (.5 percent per month or fraction thereof)
  • 01/01/2003 to 12/31/2003 - 7 percent (.583 percent per month or fraction thereof)
  • 01/01/2002 to 12/31/2002 - 8 percent (.667 percent per month or fraction thereof)
  • 01/01/2001 to 12/31/2001 - 10 percent (.833 percent per month or fraction thereof)
  • 01/01/1999 to 12/31/2000 - 9 percent (.75 percent per month or fraction thereof)
  • 01/01/1998 to 12/31/1998 - 10 percent (.833 percent per month or fraction thereof)
  • 01/01/1995 to 12/31/1997 - 12 percent (1 percent per month or fraction thereof)
  • 01/01/1950 to 12/31/1994 - 18 percent (1.5 percent per month or fraction thereof)

Penalty: Computed at the rate of five percent on the amount of tax due if payment is received after the due date.


International Fuel Tax Agreement - Articles of Agreement - R1220, R1230

Interest: For calendar years 2002 through 2012 interest is computed at the rate of one percent per month.

Penalty: Computed at the rate of 10 percent of the delinquent taxes or $50, whichever is greater


Mineral - KSA 79-4225

Interest: Interest is computed on the amount of tax due if payment is received after the due date. Interest is not computed on penalty or on interest itself. The interest rate for various periods is as follows:

  • 01/01/2013 to 12/31/2014 - 4 percent (.333 percent per month or fraction thereof)
  • 01/01/2010 to 12/31/2012 - 5 percent (.417 percent per month or fraction thereof)
  • 01/01/2009 to 12/31/2009 - 6 percent (.5 percent per month or fraction thereof)
  • 01/01/2007 to 12/31/2008 - 9 percent (.75 percent per month or fraction thereof)
  • 01/01/2006 to 12/31/2006 - 7 percent (.583 percent per month or fraction thereof)
  • 01/01/2005 to 12/31/2005 - 5 percent (.417 percent per month or fraction thereof)
  • 01/01/2004 to 12/31/2004 - 6 percent (.5 percent per month or fraction thereof)
  • 01/01/2003 to 12/31/2003 - 7 percent (.583 percent per month or fraction thereof)
  • 01/01/2002 to 12/31/2002 - 8 percent (.667 percent per month or fraction thereof)
  • 01/01/2001 to 12/31/2001 - 10 percent (.833 percent per month or fraction thereof)
  • 01/01/1999 to 12/31/2000 - 9 percent (.75 percent per month or fraction thereof)
  • 01/01/1998 to 12/31/1998 - 10 percent (.833 percent per month or fraction thereof)
  • 01/01/1995 to 12/31/1997 - 12 percent (1 percent per month or fraction thereof)
  • 01/01/1950 to 12/31/1994 - 18 percent (1.5 percent per month or fraction thereof)

Penalty: Computed at the rate of 10 percent on the amount of tax due if payment is received after the due date.


Estate - KSA 79-15,137

Interest: Interest is computed on the amount of tax due if payment is received after the due date. Interest is not computed on penalty or on interest itself. The interest rate for various periods is as follows:

  • 01/01/2013 to 12/31/2014 - 4 percent (.333 percent per month or fraction thereof)
  • 01/01/2010 to 12/31/2012 - 5 percent (.417 percent per month or fraction thereof)
  • 01/01/2009 to 12/31/2009 - 6 percent (.5 percent per month or fraction thereof)
  • 01/01/2007 to 12/31/2008 - 9 percent (.75 percent per month or fraction thereof)
  • 01/01/2006 to 12/31/2006 - 7 percent (.583 percent per month or fraction thereof)
  • 01/01/2005 to 12/31/2005 - 5 percent (.417 percent per month or fraction thereof)
  • 01/01/2004 to 12/31/2004 - 6 percent (.5 percent per month or fraction thereof)
  • 01/01/2003 to 12/31/2003 - 7 percent (.583 percent per month or fraction thereof)
  • 01/01/2002 to 12/31/2002 - 8 percent (.667 percent per month or fraction thereof)
  • 01/01/2001 to 12/31/2001 - 10 percent (.833 percent per month or fraction thereof)
  • 01/01/1999 to 12/31/2000 - 9 percent (.75 percent per month or fraction thereof)
  • 01/01/1998 to 12/31/1998 - 10 percent (.833 percent per month or fraction thereof)
  • 01/01/1995 to 12/31/1997 - 12 percent (1 percent per month or fraction thereof)
  • 01/01/1950 to 12/31/1994 - 18 percent (1.5 percent per month or fraction thereof)

Penalty: Effective for estates of decedent's dying on or after May 22, 2003. If the tax is not paid by the due date, penalty is imposed at the rate of one percent of the unpaid balance of the tax due for each month or fraction of a month that the return is not filed or tax paid, up to a maximum of 24 percent .


Sand Royalty - KSA 70a-102a

Interest: Interest is computed on the amount of tax due if payment is received after the due date. Interest is not computed on penalty or on interest itself. The interest rate for various periods is as follows:

  • 01/01/2013 to 12/31/2014 - 4 percent (.333 percent per month or fraction thereof)
  • 01/01/2010 to 12/31/2012 - 5 percent (.417 percent per month or fraction thereof)
  • 01/01/2009 to 12/31/2009 - 6 percent (.5 percent per month or fraction thereof)
  • 01/01/2007 to 12/31/2008 - 9 percent (.75 percent per month or fraction thereof)
  • 01/01/2006 to 12/31/2006 - 7 percent (.583 percent per month or fraction thereof)
  • 01/01/2005 to 12/31/2005 - 5 percent (.417 percent per month or fraction thereof)
  • 01/01/2004 to 12/31/2004 - 6 percent (.5 percent per month or fraction thereof)
  • 01/01/2003 to 12/31/2003 - 7 percent (.583 percent per month or fraction thereof)
  • 07/01/2002 to 12/31/2002 - 8 percent (.667 percent per month or fraction thereof)

Penalty: Effective July 1, 2002, a penalty of 10 percent of the royalty due is assessed on late reports and tax payments. In addition, there is a delinquent report penalty of $25 per day for each day the Sand Royalty Monthly Report (SR-89) is late.