Bill > AB16

This bill would authorize the Governor to suspend an adjustment to the motor vehicle fuel tax that is scheduled to occur on or after July 1, 2025, if the Governor determines that increasing the rate would impose an undue burden on low-income and middle-class families. The bill would require the Governor to notify the Legislature of the intent to suspend the rate adjustment and the Department of Finance to submit a proposal to maintain the same level of funding for transportation purposes as would have been generated had the scheduled adjustment not been suspended. The bill also updates references in the law from the "State Board of Equalization" to the "California Department of Tax and Fee Administration" to reflect the transfer of duties, powers, and responsibilities between these entities.