Motor Vehicle Fuel Tax Law: suspension of tax.

Plain English Breakdown

The official source does not specify how much money will be moved from the General Fund.

Suspend Motor Vehicle Fuel Tax

AB-1058 suspends the motor vehicle fuel tax for one year and requires businesses to pass savings on to consumers.

What This Bill Does

• Suspends the motor vehicle fuel tax for one year.
• Requires businesses that sell motor vehicle fuels to give customers a receipt showing how much tax would have been paid if the tax had not been suspended.
• Makes it illegal for businesses to keep any savings from the tax suspension and requires them to pass these savings on to consumers as an unfair business practice under existing laws.
• Directs the Controller to move money from the General Fund to the Motor Vehicle Fuel Account in the Transportation Tax Fund.

Who It Names or Affects

• People who buy motor vehicle fuels
• Businesses that sell motor vehicle fuels

Terms To Know

Controller

The person responsible for managing state finances and accounts.

General Fund

A fund used by the government to pay for various expenses.

Limits and Unknowns

• Does not specify how much money will be moved from the General Fund.
• The bill's effects are limited to one year, after which the tax may resume.
• It is unclear what happens if businesses do not pass savings on to consumers as required.

Official Summary Text

AB 1058, as introduced, Jeff Gonzalez.
Motor Vehicle Fuel Tax Law: suspension of tax.
Existing law, the Motor Vehicle Fuel Tax Law, imposes a tax upon each gallon of motor vehicle fuel removed from a refinery or terminal rack in this state, entered into this state, or sold in this state, at a specified rate per gallon.
Existing unfair competition laws establish a statutory cause of action for unfair competition, including any unlawful, unfair, or fraudulent business act or practice and unfair, deceptive, untrue, or misleading advertising and acts prohibited by false advertisement laws.
This bill would suspend the imposition of the tax on motor vehicle fuels for one year. The bill would require that all savings realized based on the suspension of the motor vehicle fuels tax by a person other than an end consumer, as defined, be passed on to
the end consumer, and would make the violation of this requirement an unfair business practice, in violation of unfair competition laws, as provided. The bill would require a seller of motor vehicle fuels to provide a receipt to a purchaser that indicates the amount of tax that would have otherwise applied to the transaction.
This bill would also direct the Controller to transfer a specified amount from the General Fund to the Motor Vehicle Fuel Account in the Transportation Tax Fund. By transferring General Fund moneys to a continuously appropriated account, this bill would make an appropriation.
This bill would declare that it is to take effect immediately as an urgency statute.

Current Bill Text

Download Bill PDF