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Revenue Administrative Bulletin 1996-2
Revenue Administrative Bulletin 1996-2
INTEREST RATE
For period: July 1, 1996 - December 31, 1996 (Replaces Revenue Administrative Bulletin 1995-8)
Approved: April 19, 1996
RAB-96-2. This bulletin establishes the annual rate of interest due on underpayments and overpayments for the period beginning on June 1, 1996 and ending on December 31, 1996.
A daily rate of interest of .0002595 based on an adjusted annual rate of 9.5% shall be added to a tax deficiency or an excessive claim for the period stated above. The effective annual rate of 9.5% was established pursuant to section 23(2) of the revenue act, MCL 205.23(2); MSA 7.657(23)(2), at one percentage point above the adjusted prime rate charged by three commercial banks to large businesses.
The rates of interest as announced in this bulletin also apply to overpayments as added under MCL 205.30(1);MSA 7.657(30)(1) for periods after March 31, 1993. The rate of interest for periods prior to April 1, 1993 remains at the annual rate of 9%.
The following annual and corresponding daily rates of interest are in effect and will accrue during these periods:
|
Period |
Annual Rate |
Daily Rate |
|
October 1, 1967 – June 30, 1986 |
9.0% |
(.0002466) |
|
July 1, 1986 – December 31, 1986 |
10.4% |
(.0002849) |
|
January 1, 1987 – June 30, 1987 |
9.2% |
(.0002521) |
|
July 1, 1987 – December 31, 1987 |
8.5% |
(.0002329) |
|
January 1, 1988 – June 30, 1988 |
9.2% |
(.0002514) |
|
July 1, 1988 – December 31, 1988 |
9.7% |
(.0002650) |
|
January 1, 1989 – June 30, 1989 |
10.2% |
(.0002795) |
|
July 1, 1989 – December 31, 1989 |
11.6% |
(.0003178) |
|
January 1, 1990 – June 30, 1990 |
12.0% |
(.0003288) |
|
July 1, 1990 – December 31, 1990 |
11.3% |
(.0003096) |
|
January 1, 1991 – June 30, 1991 |
11.0% |
(.0003014) |
|
July 1, 1991 – December 31, 1991 |
10.6% |
(.0002904) |
|
January 1, 1992 – June 30, 1992 |
9.5% |
(.0002595) |
|
July 1, 1992 – December 31, 1992 |
8.1% |
(.0002213) |
|
January 1, 1993 – June 30, 1993 |
7.3% |
(.0002) |
|
July 1, 1993 – December 31, 1993 |
7.0% |
(.0001917) |
|
January 1, 1994 – June 30, 1994 |
7.0% |
(.0001917) |
|
July 1, 1994 – December 31, 1994 |
7.0% |
(.0001917) |
|
January 1, 1995 – June 30, 1995 |
8.2% |
(.0002246) |
|
July 1, 1995 – December 31, 1995 |
9.5% |
(.0002602) |
|
January 1, 1996 – June 30, 1996 |
9.9% |
(.0002705) |
|
July 1, 1996 – December 31, 1996 |
9.5% |
(.0002595) |
Example: Taxpayer A, who files on a calendar year basis, filed an MI-1040 return for 1994 showing tax due of $ 1,500.00. If the tax is not paid until July 16, 1996, the amount of interest calculated due from April 18, 1995* to July 16, 1996 is as follows:
|
Period |
Calculation |
Interest |
|
April 18, 1995 – June 30, 1995 |
74 days x 0.0002246 x $1,500 |
$24.93 |
|
July 1, 1995 – December 31, 1995 |
184 days x 0.0002602 x $1,500 |
$71.82 |
|
January 1, 1996 – June 30, 1996 |
182 days x 0.0002705 x $1,500 |
$73.85 |
|
July 1, 1996 – July 16, 1996 |
16 days x 0.002595 x $1,500 |
$6.23 |
|
|
Total Interest |
$176.83 |
* Because April 15, 1995 fell on a Saturday, Michigan Individual Income tax returns were due on April 17, 1995.