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.
Summary
AB 1058 would suspend California’s motor vehicle fuel taxes for one year, including the base excise tax and related fuel tax components currently imposed under the Revenue and Taxation Code. During the suspension period, the bill would prohibit the collection of those taxes on motor vehicle fuel transactions covered by the Motor Vehicle Fuel Tax Law, with the stated purpose of immediately lowering gasoline prices and providing relief to motorists. The bill is drafted as an urgency statute, so it would take effect immediately if enacted.
The measure also tries to ensure that the tax suspension reaches consumers rather than being retained by intermediaries. It would require any non-end-consumer that realizes savings from the suspension to pass those savings through to the end consumer, and it would make failure to do so an unfair business practice enforceable under California’s unfair competition laws. Sellers would also have to provide receipts showing the amount of tax that would have applied absent the suspension. In addition, the bill would direct the Controller to transfer money from the General Fund to the Motor Vehicle Fuel Account to offset the revenue loss associated with the suspension, with any shortfall after the one-year period also covered by a General Fund transfer.
Impact
AB 1058 would temporarily override several provisions of the Motor Vehicle Fuel Tax Law by adding a new section that suspends the taxes imposed by Sections 7360, 7362, 7363, and 7364 for one year. It would also create new consumer-protection enforcement provisions tied to fuel pricing, including a requirement to pass tax savings through to end users and a receipt disclosure requirement. Because it transfers General Fund money into the Motor Vehicle Fuel Account in the Transportation Tax Fund, the bill makes an appropriation and would affect state revenues and transportation-related funding flows during and after the suspension period.
Sentiment
The bill’s stated intent and urgency language indicate a strongly pro-relief posture focused on reducing gas prices quickly for California drivers. The available context shows no committee transcript debate or recorded votes, so there is no documented formal opposition or support in the provided materials beyond the bill’s introduction and referral status. Overall, the measure appears framed as a consumer-relief and tax-cut proposal rather than a technical tax adjustment.
Contention
The main points of contention implied by the bill are fiscal and enforcement-related. Suspending fuel taxes would reduce state tax revenue, which the bill addresses by requiring General Fund transfers to the transportation fuel account; that mechanism may draw concern from lawmakers focused on budget stability or transportation funding. Another likely point of debate is whether the savings would actually reach consumers, which is why the bill imposes pass-through requirements, receipt disclosures, and unfair-business-practice penalties. Fuel suppliers, distributors, and retailers would be the parties most directly affected by those compliance obligations, while motorists would be the intended beneficiaries.
An act to amend Sections 17053.88.5, 18855, and 23688.5 of the Revenue and Taxation Code, relating to taxation, and making an appropriation therefor. therefor, and declaring the urgency thereof, to take effect immediately.