Motor Vehicle Fuel Tax Law: suspension of tax.

Assembly Member Jeff Gonzalez's motor vehicle fuel tax suspension proposal would pause California's fuel taxes for one year while requiring sellers to pass the resulting savings to consumers. The measure includes provisions to transfer funds from the state's General Fund to the Motor Vehicle Fuel Account to maintain transportation funding levels.

The legislation establishes an enforcement framework requiring fuel sellers to document the suspended tax amount on customer receipts and mandates that any tax savings realized by intermediary parties be passed through to end consumers. Violations would be classified as unfair business practices, with a 60-day notice period required before enforcement actions can begin. Sellers who respond with plans to address violations receive an additional 30 days to implement corrections.

To maintain transportation funding, the State Controller would transfer an amount equal to the previous year's fuel tax revenue, adjusted for inflation, from the General Fund to the Motor Vehicle Fuel Account within 60 days of implementation. After the suspension period, the Controller would calculate the actual revenue that would have been collected without the suspension and transfer any additional required funds to maintain revenue neutrality.

The bill includes an urgency clause for immediate implementation upon passage, requiring a two-thirds vote of the Legislature. This accelerated timeline aims to expedite the delivery of tax relief to California motorists while preserving transportation infrastructure funding through General Fund transfers.