Bill > AB1268

This bill amends California's Motor Vehicle Fuel Tax Law to provide the Governor with the authority to suspend annual fuel tax rate adjustments scheduled on or after July 1, 2025, if those adjustments would create an undue burden on low-income and middle-class families. Currently, the law requires the California Department of Tax and Fee Administration to automatically adjust fuel tax rates on July 1st each year based on the California Consumer Price Index. If the Governor chooses to suspend a future tax rate adjustment, they must notify the Legislature by January 10th of that year and provide a proclamation no sooner than 30 days after the notification. Additionally, the Department of Finance must submit a proposal to the Legislature that ensures transportation funding would remain at the same level as if the adjustment had not been suspended. The bill also updates various references from the "State Board of Equalization" to the "California Department of Tax and Fee Administration" to reflect an administrative transfer that occurred in 2017. The legislation takes effect immediately as a tax levy and aims to provide flexibility in fuel tax increases to protect economic affordability for California residents.

Transportation and Infrastructure

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1268