Slumping tax collections and budget cuts make Alabama and Georgia likely to join California in owing interest to some taxpayers for issuing their income tax refunds late.
Both states have laws requiring them to pay interest to taxpayers who filed by the April 15 deadline but don't get their refunds within 90 days. That deadline is Wednesday.
Tax officials in both states say it appears that interest will have to be paid because thousands of tax refunds are still awaiting payment.
California officials are planning to issue IOUs this month for nearly $200 million in tax refunds. California expects to pay the IOUs in October.
Kansas had also been late in paying refunds, but it borrowed money last week to catch up.