Bill > AB1058

This bill temporarily suspends the motor vehicle fuel tax in California for one year, with several key provisions designed to ensure cost savings are passed on to consumers. The bill requires that any savings realized by fuel sellers due to the tax suspension must be directly passed on to end consumers (defined as those buying fuel for personal use, not resale), and violations of this requirement would be considered an unfair business practice under California law. Fuel sellers must provide receipts that clearly show the amount of tax that would have been charged if the suspension were not in effect. To maintain transportation funding, the bill directs the State Controller to transfer an equivalent amount from the General Fund to the Motor Vehicle Fuel Account in the Transportation Tax Fund, with provisions to calculate and transfer any additional funds if the actual projected tax revenue differs from the initial estimate. The bill is designated as an urgency statute, meaning it takes effect immediately, with the stated purpose of providing immediate relief to California motorists by lowering gas prices. The tax suspension applies to all existing motor vehicle fuel tax rates, effectively reducing the per-gallon tax rate to zero for the specified one-year period, while implementing consumer protection mechanisms to ensure the tax savings are directly benefit drivers.

Transportation and Infrastructure

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1058