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Bill > AB1745


CA AB1745

CA AB1745
Motor Vehicle Fuel Tax Law: suspension of tax.


summary

Introduced
02/09/2026
In Committee
02/23/2026
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

An act to amend Sections 7360, 7362, 7363, and 7364 of, and to add Section 7374 to, the Revenue and Taxation Code, relating to taxation, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.

AI Summary

This bill suspends the state's motor vehicle fuel tax for one year, meaning drivers will not pay this tax on gasoline during that period. It requires that any savings from this tax suspension by businesses, other than the final buyer, must be passed on to the end consumer, defined as someone buying fuel for their own use and not for resale. Failing to pass on these savings is considered an unfair business practice, and sellers must provide receipts showing the amount of tax that would have otherwise been charged. The bill also directs the Controller to transfer funds from the General Fund to the Motor Vehicle Fuel Account to ensure the account remains funded, and it takes effect immediately as an urgency statute to provide quick relief to motorists by lowering gas prices.

Committee Categories

Transportation and Infrastructure

Sponsors (18)

Last Action

Referred to Com. on TRANS. (on 02/23/2026)

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