Preliminary information for the Wholesale Marihuana Tax is now available.
Approved: April 15, 2020
(Replaces Revenue Administrative Bulletin 2019-18)
Note: See most current Interest Rate RAB for the current and historical rates.
RAB-2020-5. This Revenue Administrative Bulletin (RAB) establishes the annual rate of interest due on underpayments and overpayments for the period beginning July 1, 2020 and ending on December 31, 2020. Executive Order 2020-26 and any subsequent Executive Order extend the due dates for certain taxes.
A daily rate of interest (.0001538) (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 5.63% of will be added to a tax deficiency or an excessive claim for the period stated above. The effective annual rate of 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 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, 2020 |
December 31, 2020 |
5.63% |
.0001538 |
|
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 2018 showing tax due of $1,500.00. If the tax is not paid until July 20, 2020, the amount of interest calculated due from April 15, 2019, to August 2, 2020 (days are calculated form 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 16, 2018 |
June 30, 2018 |
76 |
.0001482 |
$1,500 |
$16.89 |
|
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 |
June 30, 2020 |
182 |
.0001749 |
$1,500 |
$47.75 |
|
July 1, 2020 |
August 2, 2020 |
33 |
.0001538 |
$1,500 |
$7.61 |
Total interest: $164.45
Tax Due: $1,500.00
Total Due: $1,664.45
