Effective April 1, 2013, the Michigan sales tax withhold rate on gasoline and clear diesel fuel will be determined and adjusted on a monthly basis—rather than quarterly—without any consideration of the 10% change in the retail price that was previously required to trigger the change.
On February 27th, 2013 the Michigan Senate voted to support House Bill # 4153, and sent it on to the Governor’s office for signature, approved with immediate effect. MIRA was instrumental in 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 has made it difficult for gasoline retailers to meet their monthly sales tax obligation.
By the 15th of each month, retailers will be notified of the sales tax withhold rate 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 or email him at firstname.lastname@example.org.