### CSSB 161(JUD): "An Act relating to interest rates and calculation of interest under certain judgments and decrees and on refunds of certain taxes, royalties, or net profit shares; and providing for an effective date."

00CS FOR SENATE BILL NO. 161(JUD) 01 "An Act relating to interest rates and calculation of interest under certain 02 judgments and decrees and on refunds of certain taxes, royalties, or net profit 03 shares; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 09.30.070 is repealed and reenacted to read: 06 Sec. 09.30.070. INTEREST ON JUDGMENTS; PREJUDGMENT INTEREST. 07 (a) Interest shall accrue on judgments and decrees for the payment of money from the 08 date of entry of the judgment or decree. The interest rate in each calendar year shall 09 be five percent above the 12th Federal Reserve District discount rate in effect on 10 January 2 of that year, rounded to the nearest whole percentage point as provided in 11 (c) of this section. Interest shall be compounded annually as of the last day of the 12 year, and the interest rate shall be adjusted annually on January 2 of each year. 13 However, a judgment or decree founded on a contract in writing, providing for an 14 interest rate not exceeding the legal rate of interest for that type of contract, bears

01 interest at the rate specified in the contract if the interest rate is set out in the judgment 02 or decree. 03 (b) Except when the court finds that the parties have agreed otherwise, 04 prejudgment interest shall be awarded on a money judgment. Prejudgment interest 05 accrues from the date of injury or harm. Prejudgment interest for each calendar year 06 shall be calculated at the rate of five percent above the 12th Federal Reserve District 07 discount rate in effect on January 2 of that year, rounded to the nearest whole 08 percentage point as provided in (c) of this section. Interest shall be compounded 09 annually as of the last day of the year. 10 (c) In rounding the 12th Federal Reserve District discount rate to the nearest 11 whole percentage point, if the rate includes a percentage of 12 (1) less than 5/10ths of one percent, the rate shall be lowered to the 13 next whole percentage point; 14 (2) 5/10ths of one percent or more, the rate shall be raised to the next 15 whole percentage point. 16 * Sec. 2. AS 29.45.500(b) is amended to read: 17 (b) If, in payment of taxes legally imposed, a remittance by a taxpayer through 18 error or otherwise exceeds the amount due, and the municipality, on audit of the 19 account in question, is satisfied that this is the case, the municipality shall refund the 20 excess to the taxpayer

. The refund of the excess shall include payment of[ WITH] 21 intereston the excess tax payment computed from the date the municipality 22 received the excess tax payment to the date the municipality paid the refund. The 23 interest rate in each calendar year equals five percent above the 12th Federal 24 Reserve District discount rate in effect on January 2 of that year, rounded to the 25 nearest whole percentage point as provided in AS 09.30.070(c). Interest shall be 26 compounded annually as of the last day of the year, and the interest rate shall be 27 adjusted annually on January 2 of each year[AT EIGHT PERCENT FROM THE 28 DATE OF PAYMENT]. A claim for refund filed one year after the due date of the 29 tax is forever barred. 30 * Sec. 3. AS 38.05.135(d) is amended to read: 31 (d) If a royalty or net profit share payment to which the state is entitled under01 AS 38.05.135 - 38.05.181 is not paid when it becomes due under (c) of this section, 02 the royalty or payment bears interest in

each[A] calendaryear[QUARTER] at the 03 rate of fivepercent[PERCENTAGE POINTS] above the [ANNUAL RATE 04 CHARGED MEMBER BANKS FOR ADVANCES BY THE] 12th Federal Reserve 05 Districtdiscount rate in effect on January 2 of that year, rounded to the nearest 06 whole percentage point as provided in AS 09.30.070(c). Interest shall be 07 compounded annually as of the last day of the year, and the interest rate shall be 08 adjusted annually on January 2 of each year[AS OF THE FIRST DAY OF THAT 09 CALENDAR QUARTER, OR AT THE ANNUAL RATE OF 11 PERCENT, 10 WHICHEVER IS GREATER, COMPOUNDED QUARTERLY AS OF THE LAST 11 DAY OF THAT QUARTER]. 12 * Sec. 4. AS 38.05.135(e) is repealed and reenacted to read: 13 (e) If a royalty or net profit share payment to which the state is entitled under 14 AS 38.05.135 - 38.05.181 is overpaid, the amount overpaid bears interest from the date 15 the overpayment was made. The interest rate in each calendar year is five percent 16 above the 12th Federal Reserve District discount rate in effect on January 2 of that 17 year, rounded to the nearest whole percentage point as provided in AS 09.30.070(c). 18 Interest shall be compounded annually as of the last day of the year, and the interest 19 rate shall be adjusted annually on January 2 of each year. 20 * Sec. 5. AS 43.05.225(1) is amended to read: 21 (1) when a tax levied in this title becomes delinquent, it bears interest 22 ineach[A] calendaryear[QUARTER] at the rate of fivepercent[PERCENTAGE 23 POINTS] above the [ANNUAL RATE CHARGED MEMBER BANKS FOR 24 ADVANCES BY THE] 12th Federal Reserve Districtdiscount rate in effect on 25 January 2 of that year, rounded to the nearest whole percentage point as provided 26 in AS 09.30.070(c). Interest shall be compounded annually as of the last day of 27 the year, and the interest rate shall be adjusted annually on January 2 of each 28 year[AS OF THE FIRST DAY OF THAT CALENDAR QUARTER, OR AT THE 29 ANNUAL RATE OF 11 PERCENT, WHICHEVER IS GREATER, COMPOUNDED 30 QUARTERLY AS OF THE LAST DAY OF THAT QUARTER]; 31 * Sec. 6. AS 43.05.280(a) is repealed and reenacted to read:01 (a) If a tax levied under this title is overpaid, the amount overpaid bears 02 interest from the date the overpayment is made. The interest rate in each calendar year 03 is five percent above the 12th Federal Reserve District discount rate in effect on 04 January 2 of that year, rounded to the nearest whole percentage point as provided in 05 AS 09.30.070(c). Interest shall be compounded annually as of the last day of the year, 06 and the interest rate shall be adjusted annually on January 2 of each year. 07 * Sec. 7. AS 45.45.010(a) is amended to read: 08 (a) The rate of interest in the state

on money after it is due is, in each 09 calendar year, five percent above the 12th Federal Reserve District discount rate 10 on January 2 of that year, rounded to the nearest whole percentage point as 11 provided in AS 09.30.070(c). Interest shall be compounded annually as of the last 12 day of the year, and the interest rate shall be adjusted annually on January 2 of 13 each year[IS 10.5 PERCENT A YEAR AND NO MORE ON MONEY AFTER IT 14 IS DUE EXCEPT AS PROVIDED IN (b) OF THIS SECTION]. 15 * Sec. 8. Beginning on the effective date of this Act, postjudgment interest accrues under 16 judgments or decrees entered on or after the effective date of this Act, at the rate and in the 17 manner specified in AS 09.30.070 as repealed and reenacted by sec. 1 of this Act. 18 Postjudgment interest accrues under judgments or decrees entered before the effective date of 19 this Act, at the rate and in the manner specified under law in effect at the time that judgment 20 or decree was entered. 21 * Sec. 9. For claims or causes of action for which judgment has not been entered before 22 the effective date of this Act, prejudgment interest accrues before the effective date of this 23 Act, at the rate and in the manner specified under law in effect at the time that claim or cause 24 of action accrued. On or after the effective date of this Act, prejudgment interest accrues on 25 that claim or cause of action at the rate and in the manner specified in AS 09.30.070 as 26 repealed and reenacted by sec. 1 of this Act. 27 * Sec. 10. Beginning on the effective date of this section, interest accrues on overpayments 28 of royalties, net profit share payments, taxes, and on interest accrued on them before the 29 effective date of this Act, at the rates and in the manner specified in AS 29.45.500(b), as 30 amended by sec. 2 of this Act, in AS 38.05.135(d), as amended by sec. 3 of this Act, in 31 AS 38.05.135(e), as repealed and reenacted by sec. 4 of this Act, in AS 43.05.225(1), as01 amended in sec. 5 of this Act, and in AS 43.05.280(a), as repealed and reenacted by sec. 6 02 of this Act. 03 * Sec. 11. This Act takes effect immediately under AS 01.10.070(c).