Motor Vehicle Fuel Tax Law: adjustment suspension.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Transportation
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill would allow the Governor to temporarily suspend adjustments to the state’s motor vehicle fuel tax. Currently, the tax rate is adjusted annually based on the California Consumer Price Index. The Governor can suspend the adjustment if they determine it would unfairly burden low- and middle-income families, requiring notification to the legislature and a proposal to maintain transportation funding levels. Additionally, the bill clarifies that references in existing law should be updated to reflect the transfer of tax administration duties from the State Board of Equalization to the California Department of Tax and Fee Administration.
Key provisions
- Authorizes the Governor to suspend annual adjustments to the motor vehicle fuel tax.
- Suspension is possible if it would impose an undue burden on low- and middle-income families.
- Requires the Governor to notify the Legislature and the Department of Finance of the intent to suspend.
- Requires the Department of Finance to propose maintaining transportation funding levels.
- Changes references in existing law from ‘State Board of Equalization’ to ‘California Department of Tax and Fee Administration’.
- Specifies that the bill takes effect immediately as a tax levy.
- Addresses federal fuel tax reductions and exemptions.
- Details the calculation of adjustments based on the California Consumer Price Index.
Who is affected
- Motor vehicle fuel consumers
- Low-income and middle-class families
Bill text
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Sponsors
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1 on record
Primary sponsor
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