HB 1408 Signed into Law 
Last week the Governor signed HB 1408 which decreases the length of time the Department of Revenue has before it is required to pay interest on state tax refunds. Previously Missouri had 4 months from the later of the date the return was filed or the due date of the return before it had to pay interest on refunds. The new legislation moves their deadline up to 90 days. For all timely filed 2009 returns, refunds issued after July 14, 2010 will include interest on the refund due. For amended returns, interest will be included for refunds paid 90 days after the return was filed.
For refunds issued after this 90 day period, the interest is calculated from the later of the due date of the return or the date it is filed. The interest rate for the 2nd quarter of 2010 was 1.6% and for the 3rd quarter it is 1.3%.
Currently, the Department of Revenue is processing refunds on a first in - first out basis.
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