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Revenue Administrative Bulletin 2020-18
Revenue Administrative Bulletin 2020-18
INTEREST RATE
Approved: October 20, 2020
For period: January 1, 2021 - June 30, 2021
(Replaces Revenue Administrative Bulletin 2020-5)
RAB 2020-18. This Revenue Administrative Bulletin (RAB) establishes the annual rate of interest due on underpayments and overpayments for the period beginning January 1, 2021 and ending on June 30, 2021.
A daily rate of interest (.0001164) based on an adjusted annual rate of 4.25% 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 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:
|
Period |
Annual Rate |
|
Daily Rate | |||
|---|---|---|---|---|---|---|
|
January 1, 2021 |
- |
June 30, 2021 |
|
4.25% |
|
(.0001164) |
|
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 the 2017 tax year (due April 15, 2018) showing tax due of $1,500.00. If the tax is not paid until February 19, 2021, the amount of interest calculated due from April 15, 2018, to February 19, 2021[1], is as follows:
|
|
|
|
|
|
|
|
|
|
|
April 16, 2018 |
- |
June 30, 2018 |
76 days |
x |
.0001411 |
x $1,500 |
$16.09 |
|
|
July 1, 2018 |
- |
December 31, 2018 |
184 days |
x |
.0001482 |
x $1,500 |
$40.90 |
|
|
January 1, 2019 |
- |
June 30, 2019 |
181 days |
x |
.0001616 |
x $1,500 |
$43.87 |
|
|
July 1, 2019 |
- |
December 31, 2019 |
184 days |
x |
.0001751 |
x $1,500 |
$48.33 |
|
|
- |
June 30, 2020 |
182 days |
x |
.0001749 |
x $1,500 |
$47.75 |
||
|
July 1, 2020 |
- |
December 31, 2020 |
184 days |
x |
.0001538 |
x $1,500 |
$42.45 |
|
|
January 1, 2021 |
- |
February 19, 2021 |
50 days |
x |
.0001164 |
x $1,500 |
$8.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Interest: |
$248.12
|
||
|
|
|
|
|
|
|
|
|
|
|
Tax Due: |
$1,500.00 |
|||||||
|
Total Due: |
$1,748.12 |
|||||||
[1] Days are calculated from start date to end date, with end date included.