LANSING ? Michigan companies that pre-pay state gas sales tax will get a break beginning March 1, as the new rate the state will charge for bulk purchases of fuel takes effect.
The Department of Treasury earlier this month issued Revenue Administrative Bulletin 2012-1 setting a change from the prepaid sales tax rate from the current 21.3 cents per gallon to 17.9 cents a gallon.
The 21.3 cents rate went into effect last September 1, and was the highest rate the state had charged to that point.
The 17.9 cents rate will be the third highest rate charged. From October 1, 2008, through February 28, 2009 – when the retail price of gasoline had been more than $4 a gallon – the rate was set at 18.5 cents.
The state requires prepayment of sales tax on fuel bought in bulk from refiners, pipeline terminals or marine terminals. The prepayment rate has to be recalculated every three months unless the change in retail fuel prices has been less than 10 percent.
The first rate set, from May 1, 1994, to July 31, 1999, was 5.4 cents a gallon. The prepayment rate was as low as 9.8 cents a gallon from June 1, 2009, through August 31, 2009.
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