AB-1268
Budget & Economy

Motor Vehicle Fuel Tax Law: adjustment suspension.

Introduced
CA
2025-2026 Regular Session
0
0
Track

Key Takeaways

  • Authorizes the Governor to suspend annual gas tax increases if they burden low-income and middle-class families.
  • Requires the Governor to notify Legislature by January 10 before suspending any scheduled tax increase.
  • Mandates alternative funding proposals to maintain transportation funding if tax increases are suspended.

Summary

Assembly Member Macedo's proposal to modify California's motor vehicle fuel tax framework would create a mechanism for suspending annual inflation-based tax adjustments when they pose financial strain on residents. The legislation authorizes the Governor to halt scheduled Consumer Price Index increases to the fuel tax rate, beginning July 1, 2025, upon determining such adjustments would burden low-income and middle-class families.

The bill establishes specific procedural requirements for implementing a suspension. The Governor must notify the Legislature of the intent to pause an adjustment by January 10 of the relevant year. Concurrently, the Department of Finance must present lawmakers with a plan to maintain transportation funding at levels that would have been generated without the suspension. The Governor can then formalize the suspension through proclamation after a 30-day notification period.

The measure also updates statutory references to reflect the 2017 transfer of fuel tax administration from the State Board of Equalization to the California Department of Tax and Fee Administration. As a tax levy, the legislation would take effect immediately upon enactment, modifying the state's existing annual fuel tax adjustment process that has been in place since 2020.

Key Dates

Next Step
Referred to the Assembly Standing Committee on Transportation
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Transportation
Hearing has not been scheduled yet
Introduced
Assembly Floor
Introduced
Introduced. To print.

Contacts

Profile
Tom LackeyR
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Cecilia Aguiar-CurryD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Laurie DaviesR
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Chris WardD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Lori WilsonD
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 16 row(s) selected.
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Profile
Tom LackeyR
Assemblymember
Committee Member
Profile
Cecilia Aguiar-CurryD
Assemblymember
Committee Member
Profile
Laurie DaviesR
Assemblymember
Committee Member
Profile
Chris WardD
Assemblymember
Committee Member
Profile
Lori WilsonD
Assemblymember
Committee Member
Profile
Gregg HartD
Assemblymember
Committee Member
Profile
Josh HooverR
Assemblymember
Committee Member
Profile
Corey JacksonD
Assemblymember
Committee Member
Profile
Juan CarrilloD
Assemblymember
Committee Member
Profile
Josh LowenthalD
Assemblymember
Committee Member
Profile
Diane PapanD
Assemblymember
Committee Member
Profile
Patrick AhrensD
Assemblymember
Committee Member
Profile
John HarabedianD
Assemblymember
Committee Member
Profile
Alexandra MacedoR
Assemblymember
Bill Author
Profile
Rhodesia RansomD
Assemblymember
Committee Member
Profile
Chris RogersD
Assemblymember
Committee Member

Similar Past Legislation

Bill NumberTitleIntroduced DateStatusLink to Bill
AB-3005
Motor Vehicle Fuel Tax Law: adjustment suspension.
February 2024
Failed
AB-16
Motor Vehicle Fuel Tax Law: adjustment suspension.
December 2022
Failed
Showing 2 of 2 items
Page 1 of 1

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Alexandra Macedo
Alexandra MacedoR
California State Assembly Member
10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/21/2025)

Key Takeaways

  • Authorizes the Governor to suspend annual gas tax increases if they burden low-income and middle-class families.
  • Requires the Governor to notify Legislature by January 10 before suspending any scheduled tax increase.
  • Mandates alternative funding proposals to maintain transportation funding if tax increases are suspended.

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Alexandra Macedo
Alexandra MacedoR
California State Assembly Member

Summary

Assembly Member Macedo's proposal to modify California's motor vehicle fuel tax framework would create a mechanism for suspending annual inflation-based tax adjustments when they pose financial strain on residents. The legislation authorizes the Governor to halt scheduled Consumer Price Index increases to the fuel tax rate, beginning July 1, 2025, upon determining such adjustments would burden low-income and middle-class families.

The bill establishes specific procedural requirements for implementing a suspension. The Governor must notify the Legislature of the intent to pause an adjustment by January 10 of the relevant year. Concurrently, the Department of Finance must present lawmakers with a plan to maintain transportation funding at levels that would have been generated without the suspension. The Governor can then formalize the suspension through proclamation after a 30-day notification period.

The measure also updates statutory references to reflect the 2017 transfer of fuel tax administration from the State Board of Equalization to the California Department of Tax and Fee Administration. As a tax levy, the legislation would take effect immediately upon enactment, modifying the state's existing annual fuel tax adjustment process that has been in place since 2020.

10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/21/2025)

Key Dates

Next Step
Referred to the Assembly Standing Committee on Transportation
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Transportation
Hearing has not been scheduled yet
Introduced
Assembly Floor
Introduced
Introduced. To print.

Contacts

Profile
Tom LackeyR
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Cecilia Aguiar-CurryD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Laurie DaviesR
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Chris WardD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Lori WilsonD
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 16 row(s) selected.
Page 1 of 4
Select All Legislators
Profile
Tom LackeyR
Assemblymember
Committee Member
Profile
Cecilia Aguiar-CurryD
Assemblymember
Committee Member
Profile
Laurie DaviesR
Assemblymember
Committee Member
Profile
Chris WardD
Assemblymember
Committee Member
Profile
Lori WilsonD
Assemblymember
Committee Member
Profile
Gregg HartD
Assemblymember
Committee Member
Profile
Josh HooverR
Assemblymember
Committee Member
Profile
Corey JacksonD
Assemblymember
Committee Member
Profile
Juan CarrilloD
Assemblymember
Committee Member
Profile
Josh LowenthalD
Assemblymember
Committee Member
Profile
Diane PapanD
Assemblymember
Committee Member
Profile
Patrick AhrensD
Assemblymember
Committee Member
Profile
John HarabedianD
Assemblymember
Committee Member
Profile
Alexandra MacedoR
Assemblymember
Bill Author
Profile
Rhodesia RansomD
Assemblymember
Committee Member
Profile
Chris RogersD
Assemblymember
Committee Member

Similar Past Legislation

Bill NumberTitleIntroduced DateStatusLink to Bill
AB-3005
Motor Vehicle Fuel Tax Law: adjustment suspension.
February 2024
Failed
AB-16
Motor Vehicle Fuel Tax Law: adjustment suspension.
December 2022
Failed
Showing 2 of 2 items
Page 1 of 1