Revenue Administrative Bulletin 2021-15

INTEREST RATE

Approved: October 13, 2021

For period: January 1, 2022 - June 30, 2022

(Replaces Revenue Administrative Bulletin 2021-5)

 

RAB 2021-15.  This Revenue Administrative Bulletin (RAB) establishes the annual rate of interest due on underpayments and overpayments for the period beginning January 1, 2022 and ending on June 30, 2022.

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

January 1, 2022

June 30, 2022

4.25%

(.0001164)

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 February 7, 2022, the amount of interest calculated due from April 16, 2019, to February 7, 2022[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

December 31, 2021

184

x

.0001164

x

$1,500

$32.13

January 1, 2022

February 7, 2022

38

x

.0001164

x

$1,500

6.63

The total interest due is $227.31 and the new total amount due is $1,727.31.

[1] Days are calculated from start date to end date, with end date included.