State Sen. Phil Berger, the Republican’s minority leader, introduced a bill Monday that would impose a 10 percent penalty on state government for tax refunds issued 45 days or later after a taxpayer files a return.

Paul Woolverton of The Fayetteville Observer reports:

“If I file a tax return, and I’m late, then the state’s going to assess me penalty and interest from day one,” Berger said. It’s only fair, he said, that the state should be penalized if it’s late with the taxpayers’ refunds.

“I’m saying they’ve got 45 days to give Mr. Smith or Mr. Jones or Ms. Jones their money back, because it’s their money; it’s not the state’s money.”

Refunds have moved out slowly because the recession has reduced the state’s tax income. The government is hanging onto the money longer to cover its expenses.

In 2009, the refunds ran behind, too, but all were issued – 2.7 million refunds worth $1.9 billion – by May 13.

So far this year, according to the Department of Revenue, 2.4 million refunds worth $1.7 billion have been issued. The state has to pay interest, at a 5 percent annual rate, on any refunds issued after May 30.

Revenue Department spokesman Thomas Beam said the agency has no comment on Berger’s legislation.

Carolina Journal recently reported on the state’s doubling of tax reviews for large families this year. Some taxpayers say it’s just another revenue grab on the part of a cash-strapped state.

Berger’s bill isn’t going anywhere, obviously, but it’s a good concept and good political move in an election year.