Struggling Minnesotans who fall behind on paying state taxes could at least soon see one upside: the lowest interest rate on delinquent taxes in state history.
The Minnesota Department of Revenue announced Monday that in 2010, delinquent state tax payments will be subject to 3 percent interest. It's two percentage points lower than this year's rate of 5 percent.
Individuals and businesses with delinquent tax payments must pay interest from the date the tax is due until it is paid. They must also pay interest on the amount of any penalties owed.
Revenue officials calculate each year's interest rate by using the average short-term interest rate commercial banks charge large businesses from April through September. The previous low was in 2005 at 4 percent. The highest rate was in 1982 at 20 percent.