Preliminary information for the Wholesale Marihuana Tax is now available.
Approved: May 5, 2004
(Replaces Revenue Administrative Bulletin 2003 - 2)
RAB 2004‑2. This Revenue Administrative Bulletin (RAB) establishes the annual rate of interest due on underpayments and overpayments for the period beginning on July 1, 2004, and ending on December 31, 2004.
A daily rate of interest of .0001366 based on an adjusted annual rate of 5% will be added to a tax deficiency or an excessive claim for the period stated above. The effective annual rate of 5% was established pursuant to section 23(2) of the Revenue Act, MCL 205.23(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 RAB also apply to overpayments as added under MCL 205.30(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:
|
Start Date |
End Date |
Annual Rate |
Daily Rate |
|
July 1, 2004 |
December 31, 2004 |
5.0% |
.0001366 |
|
January 1, 2004 |
June 30, 2004 |
5.0% |
.0001366 |
|
July 1, 2003 |
December 31, 2003 |
5.4% |
.0001479 |
|
January 1, 2003 |
June 30, 2003 |
5.8% |
.0001589 |
|
July 1, 2002 |
December 31, 2002 |
6.0% |
.0001644 |
|
January 1, 2002 |
June 30, 2002 |
8.0% |
.0002192 |
|
July 1, 2001 |
December 31, 2001 |
10.1% |
.0002767 |
|
January 1, 2001 |
June 30, 2001 |
10.4% |
.0002849 |
|
July 1, 2000 |
December 31, 2000 |
9.5% |
.0002596 |
|
January 1, 2000 |
June 30, 2000 |
8.9% |
.0002432 |
|
July 1, 1999 |
December 31, 1999 |
8.8% |
.0002411 |
|
January 1, 1999 |
June 30, 1999 |
9.5% |
.0002603 |
|
July 1, 1998 |
December 31, 1998 |
9.5% |
.0002603 |
|
January 1, 1998 |
June 30, 1998 |
9.5% |
.0002603 |
|
July 1, 1997 |
December 31, 1997 |
9.3% |
.0002548 |
|
January 1, 1997 |
June 30, 1997 |
9.25% |
.0002534 |
|
July 1, 1996 |
December 31, 1996 |
9.5% |
.0002596 |
|
January 1, 1996 |
June 30, 1996 |
9.9% |
.0002705 |
|
July 1, 1995 |
December 31, 1995 |
9.5% |
.0002603 |
|
January 1, 1995 |
June 30, 1995 |
8.2% |
.0002247 |
|
July 1, 1994 |
December 31, 1994 |
7.0% |
.0001918 |
|
January 1, 1994 |
June 30, 1994 |
7.0% |
.0001918 |
|
July 1, 1993 |
December 31, 1993 |
7.0% |
.0001918 |
|
January 1, 1993 |
June 30, 1993 |
7.3% |
.0002000 |
|
July 1, 1992 |
December 31, 1992 |
8.1% |
.0002213 |
|
January 1, 1992 |
June 30, 1992 |
9.5% |
.0002596 |
|
July 1, 1991 |
December 31, 1991 |
10.6% |
.0002904 |
|
January 1, 1991 |
June 30, 1991 |
11.0% |
.0003014 |
|
July 1, 1990 |
December 31, 1990 |
11.3% |
.0003096 |
|
January 1, 1990 |
June 30, 1990 |
12.0% |
.0003288 |
|
July 1, 1989 |
December 31, 1989 |
11.6% |
.0003178 |
|
January 1, 1989 |
June 30, 1989 |
10.2% |
.0002795 |
|
July 1, 1988 |
December 31, 1988 |
9.7% |
.0002650 |
|
January 1, 1988 |
June 30, 1988 |
9.2% |
.0002514 |
|
July 1, 1987 |
December 31, 1987 |
8.5% |
.0002329 |
|
January 1, 1987 |
June 30, 1987 |
9.2% |
.0002521 |
|
July 1, 1986 |
December 31, 1986 |
10.4% |
.0002849 |
|
October 1, 1967 |
June 30, 1986 |
9.0% |
.0002466 |
Example: Taxpayer A, who files on a calendar year basis, filed a MI‑1040 return for 2001 showing tax due of $1,500.00. If the tax is not paid until August 11, 2004 the amount of interest calculated due from April 16 2002 through August 11, 2004, is as follows:
|
Start Date of Interest Period |
End Date of Interest Period |
Number of Days in Interest Period Calculation |
Daily Interest Rate for Period |
Amount of Tax Due on Return |
Interest |
|
April 16, 2002 |
June 30, 2002 |
75 |
.0002192 |
$1,500 |
$24.66 |
|
July 1, 2002 |
December 31, 2002 |
184 |
.0001644 |
$1,500 |
$45.37 |
|
January 1, 2003 |
June 30, 2003 |
181 |
.0001589 |
$1,500 |
$43.14 |
|
July 1, 2003 |
December 31, 2003 |
184 |
.0001479 |
$1,500 |
$40.82 |
|
January 1, 2004 |
June 30, 2004 |
182 |
.0001366 |
$1,500 |
$37.29 |
|
July 1, 2004 |
August 11, 2004 |
42 |
.0001366 |
$1,500 |
$8.61 |
Total Interest charged from date return was due until date paid: $199.89
Total amount of tax due on return: $1,500.00
Total amount due (tax and interest): $1,699.89
