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Revenue Administrative Bulletin 2023-5
Revenue Administrative Bulletin 2023-5
Interest Rate
For period: July 1, 2023, through December 31, 2023
Approved: April 11, 2023
(Replaces Revenue Administrative Bulletin 2022-15)
RAB 2023-5. This Revenue Administrative Bulletin (RAB) establishes the annual rate of interest due on underpayments and overpayments for the period beginning July 1, 2023, and ending on December 31, 2023.
A daily rate of interest of 0.0002260 based on an adjusted annual rate of 8.25% 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 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 |
|
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 |
|
July 1, 2013 |
December 31, 2013 |
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 August 28, 2023, the amount of interest calculated due from April 19, 2022, to August 28, 2023, (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 |
|
July 1, 2023 |
August 28, 2023 |
59 |
0.0002260 |
$1,500.00 |
$20.00 |
|
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: $107.07
Total amount of tax due on return: $1,500.00
Total amount due (tax and interest): $1,607.07