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Revenue Administrative Bulletin 2023-17

Interest Rate

 

For period: January 1, 2024, through June 30, 2024

Approved: October 4, 2023

(Replaces Revenue Administrative Bulletin 2023-5)

RAB 2023-17.  This Revenue Administrative Bulletin (RAB) establishes the annual rate of interest due on underpayments and overpayments for the period beginning January 1, 2024, and ending on June 30, 2024.

A daily rate of interest of .0002541 based on an adjusted annual rate of 9.30% will be added to a tax deficiency or an excessive claim for the period stated above.  The effective annual rate 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 under MCL 205.30(1).

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, 2024

June 30, 2024

9.30%

0.0002541

July 1, 2023

December 31, 2023

8.25%

0.0002260

January 1, 2023

June 30, 2023

5.65%

0.0001548

July 1, 2022

December 31, 2022

4.27%

0.0001170

January 1, 2022

June 30, 2022

4.25%

0.0001164

July 1, 2021

December 31, 2021

4.25%

0.0001164

January 1, 2021

June 30, 2021

4.25%

0.0001164

July 1, 2020

December 31, 2020

5.63%

0.0001538

January 1, 2020

June 30, 2020

6.4%

0.0001749

July 1, 2019

December 31, 2019

6.39%

0.0001751

January 1, 2019

June 30, 2019

5.9%

0.0001616

July 1, 2018

December 31, 2018

5.41%

0.0001482

January 1, 2018

June 30, 2018

5.15%

0.0001411

July 1, 2017

December 31, 2017

4.7%

0.0001288

January 1, 2017

June 30, 2017

4.5%

0.0001233

July 1, 2016

December 31, 2016

4.4%

0.0001202

January 1, 2016

June 30, 2016

4.25%

0.0001161

July 1, 2015

December 31, 2015

4.25%

0.0001164

January 1, 2015

June 30, 2015

4.25%

0.0001164

July 1, 2014

December 31, 2014

4.25%

0.0001164

January 1, 2014

June 30, 2014

4.25%

0.0001164

 

Historical interest rates can be viewed here:  Historical Over and Under Payment Interest Rates (michigan.gov)

Example: Taxpayer A, who files on a calendar year basis, filed a MI‑1040 return for the 2021 tax year showing tax due of $1,500.00.  If the tax, due April 18, 2022 (Emancipation Day was observed April 15, 2022, which changed the due date to April 18, 2022), is not paid until February 29, 2024, the amount of interest calculated due from April 19, 2022, to February 29, 2024, (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

January 1, 2024

February 29, 2024

60

0.0002541

$1,500.00

$22.87

July 1, 2023

December 31, 2023

184

0.0002260

$1,500.00

$62.38

January 1, 2023

June 30, 2023

181

0.0001548

$1,500.00

$42.03

July 1, 2022

December 31, 2022

184

0.0001170

$1,500.00

$32.29

April 19, 2022

June 30, 2022

73

0.0001164

$1,500.00

$12.75

 

Total Interest charged from date return was due until date paid: $172.32

Total amount of tax due on return: $1,500.00

Total amount due (tax and interest): $ 1,672.32