Increases interest rate paid on certain overdue refunds of tax overpayments.

This bill increases the interest rate paid on overdue tax refunds in New Jersey. For refunds processed on or after July 1, 2026, the interest rate will be three percentage points above the prime rate (up from the current prime rate). It directly affects taxpayers who have overpaid state income taxes and are waiting for refunds beyond the standard processing period. The change applies to all eligible overpayments, with interest calculated monthly and compounded annually. The current prime-rate interest rate remains in effect until the 2026 effective date.