Motor Vehicle Fuel Tax Law: suspension of tax.

Plain English Breakdown

The official source material does not provide specific details on the amount of money transferred from the General Fund or what happens after one year when the tax suspension ends.

Suspension of Motor Vehicle Fuel Tax

AB-1745 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 selling fuel to give customers a receipt showing how much tax would have been charged if the suspension did not exist.
• Makes it illegal for businesses to keep any of the savings from the suspended tax and requires them to pass all savings on to consumers.

Who It Names or Affects

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

Terms To Know

Controller

The person responsible for managing state finances and accounting.

General Fund

A fund used by the government to pay for various programs and services.

Limits and Unknowns

• It is not clear how much money will be transferred from the General Fund.
• The bill does not specify what happens after one year when the tax suspension ends.

Official Summary Text

AB 1745, 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