HB2396 would create a new Chapter 90A in Title 75 of the Pennsylvania Consolidated Statutes to provide temporary consumer fuel price relief. For a six-month period, it would reduce to zero the state taxes imposed under section 9004(b) and (d) on liquid fuels, fuels, and alternative fuels, and for a 12-month period it would cut in half the electric vehicle road user charge fee under section 9024 for new registrations and renewals. The bill also requires the Department of Revenue to estimate the revenue loss from the tax reduction and report that estimate to the Office of the Budget and the General Assembly.
To offset the lost revenue, the bill directs the Office of the Budget to certify the estimate and requires the State Treasurer to transfer an equal amount from the Budget Stabilization Reserve Fund to the Motor License Fund or another authorized fund receiving those revenues. It also requires fuel dealers and alternative fuel dealers to pass the tax savings through to consumers during the six-month relief period, prohibits them from including the reduced tax amount in the sale price, and authorizes enforcement under the Unfair Trade Practices and Consumer Protection Law by the Attorney General or district attorneys. The act would take effect June 1, 2026, or immediately if later.
The bill’s impact would be to temporarily suspend or reduce certain transportation-related fuel taxes and EV road user charges, while shifting replacement funding from the state’s rainy day fund to transportation-related accounts. It would affect fuel sellers, alternative fuel sellers, consumers purchasing motor fuels, and EV owners registering or renewing vehicles, as well as the Department of Revenue, the Office of the Budget, the State Treasurer, and enforcement authorities. It would also create a new statutory framework for monitoring revenue loss and mandating pass-through pricing.
Because there are no recorded votes or committee transcripts provided, there is no documented floor or committee sentiment in the materials. Based on the bill text alone, the measure appears designed as consumer relief legislation, but it also imposes compliance and enforcement obligations on sellers and requires use of reserve funds to backfill lost revenue. The main point of potential contention is the tradeoff between short-term fuel price relief and the fiscal impact on transportation funding and the Budget Stabilization Reserve Fund, along with whether retailers can and should be required to pass the tax savings directly to consumers.
Impact
HB2396 would amend Title 75 by adding a new Chapter 90A that temporarily eliminates certain liquid fuels and fuels taxes and reduces the electric vehicle road user charge, while requiring a corresponding transfer from the Budget Stabilization Reserve Fund to replace lost revenue in transportation-related accounts. It would also create new duties for the Department of Revenue, the Office of the Budget, the State Treasurer, fuel dealers, and alternative fuel dealers, and would make violations of the pass-through pricing requirement enforceable under the Unfair Trade Practices and Consumer Protection Law.
Sentiment
No committee transcripts or votes are provided, so there is no recorded legislative sentiment to summarize. From the bill’s structure and caption, it is framed as consumer relief and likely intended to be popular with motorists and fuel purchasers, but it also reflects concern about revenue replacement and enforcement. The absence of recorded opposition or support in the provided materials means any broader sentiment would be speculative.
Contention
The likely areas of contention are fiscal and administrative. Critics may object to reducing transportation-related tax revenues and relying on the Budget Stabilization Reserve Fund to backfill the loss, especially if the revenue estimate proves uncertain. Others may question the fairness of extending relief to EV road user charges alongside fuel taxes, or whether the bill’s requirement that dealers pass savings through to consumers is practical and enforceable. Supporters would likely emphasize immediate consumer savings and temporary relief from high fuel prices.
In sales and use tax, further providing for exclusions from tax; and, in gross receipts tax, further providing for imposition of tax; and providing for reporting and for transfers.
Provides mortgage payment relief, income tax relief, consumer reporting protection, and eviction protection for residential property owners, tenants, and other consumers, economically impacted during time of coronavirus disease 2019 pandemic.