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Revenue Administrative Bulletin 2019-18
Revenue Administrative Bulletin 2019-18
Interest Rate – For Period: January 1, 2020 – June 30, 2020
Approved: November 18, 2019
(Replaces Revenue Administrative Bulletin 2019-6)
Note: See most current Interest Rate RAB for the current and historical rates.
RAB 2019-18. This Revenue Administrative Bulletin (RAB) establishes the annual rate of interest due on underpayments and overpayments for the period beginning on January 1, 2020, and ending on June 30, 2020.
A daily rate of interest (.0001749) (this rate is expressed in a seven-digit number format, rather than percent format. Because 2020 is a leap year, the annual rate is divided by 366 days) based on an adjusted annual rate of 6.4% will be added to a tax deficiency or an excessive claim for the period stated above. The effective annual rate of 6.4% 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 rate 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 |
|
January 1, 2020 |
June 30, 2020 |
6.4% |
.0001749 |
|
July 1, 2019 |
December 31, 2019 |
6.39% |
.0001751 |
|
January 1, 2019 |
June 30, 2019 |
5.9% |
.0001616 |
|
July 1, 2018 |
December 31, 2018 |
5.41% |
.0001482 |
|
January 1, 2018 |
June 30, 2018 |
5.15% |
.0001411 |
|
July 1, 2017 |
December 31, 2017 |
4.7% |
.0001288 |
|
January 1, 2017 |
June 30, 2017 |
4.5% |
.0001233 |
|
July 1, 2016 |
December 31, 2016 |
4.4% |
.0001202 |
|
January 1, 2016 |
June 30, 2016 |
4.25% |
.0001161 |
|
July 1, 2015 |
December 31, 2015 |
4.25% |
.0001164 |
|
January 1, 2015 |
June 30, 2015 |
4.25% |
.0001164 |
|
July 1, 2014 |
December 31, 2014 |
4.25% |
.0001164 |
|
January 1, 2014 |
June 30, 2014 |
4.25% |
.0001164 |
|
July 1, 2013 |
December 31, 2013 |
4.25% |
.0001164 |
|
January 1, 2013 |
June 30, 2013 |
4.25% |
.0001164 |
|
July 1, 2012 |
December 31, 2012 |
4.25% |
.0001161 |
|
January 1, 2012 |
June 30, 2012 |
4.25% |
.0001161 |
|
July 1, 2011 |
December 31, 2011 |
4.25% |
.0001164 |
|
January 1, 2011 |
June 30, 2011 |
4.25% |
.0001164 |
|
July 1, 2010 |
December 31, 2010 |
4.25% |
.0001164 |
|
January 1, 2010 |
June 30, 2010 |
4.25% |
.0001164 |
|
July 1, 2009 |
December 31, 2009 |
4.7% |
.0001288 |
|
January 1, 2009 |
June 30, 2009 |
6.0% |
.0001644 |
|
July 1, 2008 |
December 31, 2008 |
7.9% |
.0002151 |
|
January 1, 2008 |
June 30, 2008 |
9.2% |
.0002514 |
|
July 1, 2007 |
December 31, 2007 |
9.25% |
.0002534 |
|
January 1, 2007 |
June 30, 2007 |
9.1% |
.0002493 |
|
July 1, 2006 |
December 31, 2006 |
8.2% |
.0002245 |
|
January 1, 2006 |
June 30, 2006 |
7.2% |
.0001973 |
|
July 1, 2005 |
December 31, 2005 |
6.2% |
.0001699 |
|
January 1, 2005 |
June 30, 2005 |
5.2% |
.0001428 |
|
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 |
Example: Taxpayer A, who files on a calendar year basis, filed a MI-1040 return for 2017 showing tax due of $1,500.00. If the tax is not paid until March 2, 2020, the amount of interest calculated due from April 18, 2018 (2017 Income Taxes were due April 17, 2018, due to the federally-recognized Emancipation Day holiday), to March 2, 2020 (days are calculated from start date to end date, with end date included), is as follows:
|
Start Date of Interest Period |
End Date of Interest Period |
Number of Days in Interest Period |
Daily Interest Rate for Period |
Amount of Tax Due on Return |
Amount of Interest for Period |
|
April 18, 2018 |
June 30, 2018 |
74 |
.0001411 |
$1,500 |
$15.66 |
|
July 1, 2018 |
December 31, 2018 |
184 |
.0001482 |
$1,500 |
$40.90 |
|
January 1, 2019 |
June 30, 2019 |
181 |
.0001616 |
$1,500 |
$43.87 |
|
July 1, 2019 |
December 31, 2019 |
184 |
.0001751 |
$1,500 |
$48.33 |
|
January 1, 2020 |
March 2, 2020 |
62 |
.0001749 |
$1,500 |
$16.26 |
Total Interest: $165.02
Tax Due: $1,500.00
Total Due: $1,665.02