MI SB1080

Establishes prepayment of sales tax on gasoline (through March 31, 2013) and both gasoline and diesel fuel (beginning April 1, 2013) at the time of purchase or shipment from refiners, pipeline terminal operators, or marine terminal operators.

Prepayment rates for gasoline and diesel fuel are determined monthly by the department based on 6% of the statewide average retail price, rounded up to the nearest 1/10 of 1 cent per gallon.

Allows purchasers or receivers of fuel to claim estimated prepayment credits on monthly tax returns based on the difference between prepayments made and collections from subsequent sales, subject to bad debt deductions.

Exempts fuel transfers within a bulk transfer/terminal system, transfers between refiners/operators within the state, and transfers for out-of-state sale from prepayment requirements.

Requires refiners, pipeline terminal operators, and marine terminal operators to remit collected prepayments to the department according to specified schedules, with penalties under MCL 205.1 to 205.31 for failure to remit.