18. The liabilities that were assessed as a result of the re-audit accrued interest for
the eleven-month period of August 2002 through July 2003. During this time period, the
Department determined that the following interest amounts were owed to these
$31,049.65 (Stip. #28)
19. The taxpayer has solicited the Motor Fuel Tax Administrators in each of the
above jurisdictions (except Arkansas, Ontario and Wisconsin) and asked that the interest
be waived. The State of West Virginia has agreed to waive the interest in the amount of
$2,722.71. (Stip. #29)
CONCLUSIONS OF LAW:
The Articles of Agreement require audit interest to be calculated separately for
each jurisdiction, and it accrues monthly until it is paid.
Ex. 4, Article XII,
¶R1230.300.010. An overpayment for one jurisdiction has no effect on the interest
calculation for any other jurisdiction. Id. The interest accrues at the rate of 1% per
month. Ex. 4, Article XII, ¶R1230.100. The Articles of Agreement do not require any
jurisdiction to pay interest to the taxpayer on overpayments.
Under the Articles of Agreement, a member jurisdiction may re-examine a base
jurisdiction’s audit findings if, within 45 days of receiving the audit report, it notifies the
This surcharge was not explained in the record.