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.
![]() Tom LackeyR Assembly Member | Committee Member | Not Contacted | |
![]() Cecilia Aguiar-CurryD Assembly Member | Committee Member | Not Contacted | |
![]() Laurie DaviesR Assembly Member | Committee Member | Not Contacted | |
![]() Chris WardD Assembly Member | Committee Member | Not Contacted | |
![]() Lori WilsonD Assembly Member | Committee Member | Not Contacted |
This bill was recently introduced. Email the authors to let them know what you think about it.
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.
![]() Tom LackeyR Assembly Member | Committee Member | Not Contacted | |
![]() Cecilia Aguiar-CurryD Assembly Member | Committee Member | Not Contacted | |
![]() Laurie DaviesR Assembly Member | Committee Member | Not Contacted | |
![]() Chris WardD Assembly Member | Committee Member | Not Contacted | |
![]() Lori WilsonD Assembly Member | Committee Member | Not Contacted |