Two important changes to Michigan’s prepaid sales tax on fuel have taken effect on April 1, 2013.
The prepaid sales tax rate on gasoline will be calculated each and every month, rather than quarterly. The new rate will be published by the 10th of each month for application in the following month. For example, the rate for July will be published by June 10th. The rate established for April 2013 for gasoline is 20.4 cents per gallon.
Clear diesel fuel will now be subject to a prepaid sales tax calculation. The same procedure described above will apply to the publication of a revised monthly rate applicable to clear diesel fuel. The rate established for April 2013 for clear diesel fuel is 22.7 cents per gallon.
MIRA was instrumental is supporting this legislation, which should help smooth out the cash flow imbalance that occurs when the actual sales tax obligation differs significantly from the amount withheld. Previously, this adverse effect on cash flow made it difficult for gasoline retailers to meet their monthly sales tax obligation.
New rates will be published by the 10th of each month, applicable to gasoline and clear diesel fuel purchases for the next month. If you have any questions, please feel free to call Ed Weglarz at MIRA (800) 666-6233. Watch for more details in the April issue of Bottom Line magazine.