DATE: December 1, 2004
TO: Agency Addressed (No. 05, 2004-2005)
A. Darling, Director
Division of Accounting & Auditing
Department of Financial Services
SUBJECT: Judgment Interest Rate for the Year 2005
The Chief Financial Officer is required under Section 55.03(1), Florida Statutes (F.S.), to set the rate of interest that shall be payable on judgments and decrees beginning January 1st of each year. Sections 215.422(3)(b), 337.141(3) and 687.01, F.S., were amended to require the use of the interest rate established in Section 55.03(1), F.S., as follows:
the payment of interest on late payments to vendors for goods and services purchased by the State;
the payment of interest on late payments for construction or maintenance contracts administered by the Department of Transportation; and
cases where a rate of interest is not specified in a contract.
The interest rate established for calendar year 2005 has been set at 7.0% per annum or .0001918 per day, pursuant to Section 55.03(1), F.S. The interest rate for payments to health care providers remains at 1% per month or .0003333 per day, pursuant to Section 215.422(13), F.S. Rule 69I-25, Florida Administrative Code, establishes the procedures for computing the interest rate on an annual basis. The current and historical interest rates are located on the Internet at www.dbf.state.fl.us/interest.html.