Some States Delaying Tax Refund Payments

From CBS News.com:

Some states suffering severe, recession-induced budget problems are holding off on paying tax refunds to individuals and businesses. North Carolina, Hawaii and Alabama are already doing it and others, such as New York and Kansas, might.

The states are holding or may hold onto your money as long as they can because they need to use it for other purposes, tax expert and attorney Barbara Weltman told "Early Show" Saturday Edition" co-anchor Chris Wragge.

You'll eventually get your refund, but when depends on where you live, she explained. Laws differ from state-to-state, but most states have to issue a check (or direct deposit) within 45 days from April 15 or the date the return was filed, whichever is later. So, if you filed your return in February, the refund isn't due until 45 days after April 15. Some states have even longer — up to 90 days — to issue the refunds without having to pay interest.

Weltman says she sees this becoming a long-term problem because, even if the economy recovers, many states will have huge leftover budget gaps. "I think the best strategy for tax payers is to avoid the need to get a refund — which is really just an interest-free loan you've made to the government," she observed.

Apple Wins North Carolina Tax Break For $1 Billion Data Center

According to CNN.com a town in North Carolina has just given the green light to Apple Computers to build a giant data center in their county. The local government has agreed to provide the technology giant with over $46 million worth of tax incentives over the next decade, which undoubtedly led to the agreement.

The decision Monday helped spur Apple's plans to expand its network of data centers, which are warehouse-sized buildings that house vast numbers of giant computers known as servers. Data centers are usually used to manage the flow of Internet traffic. In Apple's case, the Maiden, NC data center could be used to bolster its iTunes music store business.

Apple has already agreed to invest $1 billion in the structure in Maiden, which is about 30 miles northwest of Charlotte, according to the agreement. If Apple invests an additional $1 billion into the data center, the county and town will provide another $20.7 million in incentives over another 10-year period.

"There is no commitment beyond the billion dollars," said Scott Millar, president of the Catawba County Economic Development Corp.

Poor Hit Hard By Refund Anticipation Loans

According to an Associated Press report, people who were hit hardest by refund anticipation loans were low income households. A North Carolina investigation found that people in the state spend about $44 million per year on refund anticipation loans with interest rates topping 800%. The study claims that nearly 86% of the refund loans issued in 2004 went to low-income borrowers. About 500,000 taxpayers in North Carolina get tax refund loans every year, with average costs ranging from $78.30 to $174.95. For more details on the study visit Forbes.com.