This document does not meet the definition of a "statement" required to be published in the Indiana Register under IC 4-22-7-7. However, under IC 6-8.1-10-1(c), the Commissioner is required to establish, on or before November 1 of each year, the applicable interest rates for tax overpayments and underpayments that will take effect for the immediately succeeding calendar year. The purpose of this notice is to inform the public of the interest rates that will be effective for the calendar year beginning January 1, 2007.

The rate of interest for an excess tax payment determined by the percentage rounded to the nearest whole number that equals the average investment yield on state money for the state's previous fiscal year. This number excludes pension fund investments published in the Auditor of State's comprehensive annual financial report. Based on this calculation, the rate of interest for an excess tax payment for calendar year 2007 will be three percent (3%).

The rate of interest for an underpayment of tax is the percentage rounded to the nearest whole number that equals two percentage points above the average investment yield on state money for the state's previous fiscal year. This number excludes pension fund investments published in the Auditor of the State's comprehensive annual financial report. Based on this calculation, the rate of interest for an underpayment of tax for calendar year 2007 will be five percent (5%).

A historical list of the above calculated percentages is attached to this document.

Indiana Department of State Revenue

______________________________

John Eckart,

Commissioner