Michigan – Prepaid Fuel Rates Announced

SALT Report 2957 – The Michigan Department of Treasury issued a bulletin that establishes the October 2013 sales tax prepayment rates applicable to sales and purchases of gasoline and diesel fuels.

For the period of October 1, 2013, through October 31, 2013 the prepaid sales tax rates are as follows:

  • Gasoline is $19.3 cents per gallon
  • Diesel fuel $21.5 cents per gallon

Additionally, the bulletin states that on April 1, 2013, the sales tax prepayment collection and reporting requirements were expanded to include additional fuels.  Because of this the term “fuel” now applies to gasoline – which includes alcohol and any oxygenate that can be blended and used in a motor fuel; and diesel fuel -which excludes dyed diesel fuel and kerosene.

Therefore, at the time of purchase or shipment from a refiner, pipeline terminal operator, or marine terminal operator, the purchaser or receiver of “fuel” is required to prepay a portion of the sales tax at the monthly rates established by the Department.

For Further Information

Michigan Department of Treasury – Revenue Administrative Bulletin 2013-12