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Revenue Administrative Bulletin 2021-5
Revenue Administrative Bulletin 2021-5
INTEREST RATE
Approved: April 9, 2021
For period: July 1, 2021 - December 31, 2021
(Replaces Revenue Administrative Bulletin 2020-18)
RAB 2021-5. This Revenue Administrative Bulletin (RAB) establishes the annual rate of interest due on underpayments and overpayments for the period beginning July 1, 2021 and ending on December 31, 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 Starting |
Period Ending |
Annual Rate |
Daily Rate |
|---|---|---|---|
|
July 1, 2021 |
December 31, 2021 |
4.25% |
(.0001164) |
|
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 2018 tax year (due April 15, 2019) showing tax due of $1,500.00. If the tax is not paid until August 19, 2021, the amount of interest calculated due from April 16, 2019, to August 19, 2021[1], is as follows:
|
Start Date in Period |
End Date in Period |
Days in Period |
Operator |
Daily Rate |
Operator |
Base Tax Due |
Interest Due for Period |
|---|---|---|---|---|---|---|---|
|
April 16, 2019 |
June 30, 2019 |
76 |
x |
.0001616 |
x |
$1,500 |
$18.42 |
|
July 1, 2019 |
December 31, 2019 |
184 |
x |
.0001751 |
x |
$1,500 |
$48.33 |
|
January 1, 2020 |
June 30, 2020 |
182 |
x |
.0001749 |
x |
$1,500 |
$47.75 |
|
July 1, 2020 |
December 31, 2020 |
184 |
x |
.0001538 |
x |
$1,500 |
$42.45 |
|
January 1, 2021 |
June 30, 2021 |
181 |
x |
.0001164 |
x |
$1,500 |
$31.60 |
|
July 1, 2021 |
August 19, 2021 |
50 |
x |
.0001164 |
x |
$1,500 |
$8.73 |
The total interest due is $197.28 and the new total amount due is $1,697.28.
[1] Days are calculated from start date to end date, with end date included.