MI HB5817

Requires purchasers or receivers of fuel to prepay a portion of sales tax at the time of purchase or shipment from refiners, pipeline terminal operators, or marine terminal operators.

Sets prepayment rates at 6% of the statewide average retail price for gasoline (self-serve unleaded regular) and diesel fuel (undyed No. 2 ultra-low sulfur), rounded up to the nearest 1/10 of 1 cent per gallon, with rates determined and published monthly by the department.

Allows taxpayers making prepayments to claim estimated prepayment credits on monthly returns based on the difference between prepayments made in the preceding month and collections received during the current month.

Requires refiners, pipeline terminal operators, and marine terminal operators to remit prepayments received to the department on a bi-monthly schedule (by the 25th for mid-month receipts and by the 10th for end-of-month receipts) and subjects them to penalties for failure to remit.

Establishes that purchasers making prepayments have no further liability if the refiner or terminal operator fails to remit the prepayment, and that these operators receive no deduction for collecting and remitting prepayments.