The bill amends Section 44-1-7 of the General Laws regarding interest on delinquent tax payments and the limitations on audits by the tax administrator. It introduces a new interest rate structure, capping the interest on all delinquent tax payments at twelve percent (12%) per annum starting January 1, 2026, which includes trust fund taxes. Additionally, the bill specifies that the interest rate applied will be based on the date of notification of delinquency rather than the original tax obligation date. The previous provisions that allowed for a minimum interest rate of eighteen percent (18%) for certain periods are deleted.

Furthermore, the bill limits the tax administrator's authority to audit taxpayers to a maximum of three years from the date of filing, with a seven-year limit for cases involving fraud. It also establishes that no audits or tax collections can occur beyond ten years from the original filing date or required filing deadline. The tax administrator is prohibited from requesting filings or collecting tax liabilities for any period exceeding seven years, regardless of whether an audit has been initiated. This act is set to take effect on January 1, 2026, and will apply to all assessments, audits, and tax payments initiated on or after that date.