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AB-2722 • 2026

Motor Vehicle Fuel Tax Law: suspension of tax.

Motor Vehicle Fuel Tax Law: suspension of tax.

Energy Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Ellis
Last action
Official status
Assembly - Transportation
Effective date
Not listed

Plain English Breakdown

The bill is labeled as an urgency statute taking effect immediately, but the official status shows it was re-referred to committee on March 26, 2026. The final effective date depends on further legislative or executive action not shown in the provided text.

AB-2722: Fuel Tax Suspension and Environmental Data Rules

This law suspends the state tax on motor vehicle fuel for one year, requires sellers to pass savings to customers with proof on receipts, directs a fund transfer from the General Fund, and sets new rules for publishing environmental data in machine-readable formats.

What This Bill Does

  • Suspends the tax on each gallon of motor vehicle fuel sold or moved in California for one year.
  • Requires businesses that are not end consumers to pass all savings from the paused tax directly to the final buyer.
  • Makes it an unfair business practice if a seller keeps money saved from the paused tax instead of passing it on.
  • Requires sellers to provide receipts showing how much tax would have been charged without this pause.
  • Directs the Controller to transfer a specified amount from the General Fund into the Motor Vehicle Fuel Account in the Transportation Tax Fund.
  • Requires state agencies to publish environmental data online in machine-readable formats determined by the Secretary for Environmental Protection.
  • Authorizes the creation of an interoperable statewide environmental data portal, subject to available resources.

Who It Names or Affects

  • Sellers of motor vehicle fuel, such as gas stations and refineries.
  • End consumers who buy or use motor vehicle fuel.
  • State agencies that collect, maintain, or publish environmental data.
  • The California Environmental Protection Agency (Secretary for Environmental Protection) and the Office of Data and Innovation.

Terms To Know

Motor Vehicle Fuel Tax
A fee charged on every gallon of fuel removed from a refinery, entered into the state, or sold in California.
End Consumer
The final person who buys and uses the fuel, as defined by law, rather than a business that resells it.
Machine-Readable Format
A digital file type determined by state officials that computers can automatically read to exchange environmental data.

Limits and Unknowns

  • The exact dollar amount transferred from the General Fund is specified in the bill but not detailed in this summary.
  • Creating a statewide environmental data portal depends on whether necessary resources are available.
  • Specific dates for when the one-year tax pause begins or ends are not listed in the provided text.

Bill History

  1. California Legislative Information

    Assembly - Transportation

Official Summary Text

Motor Vehicle Fuel Tax Law: suspension of tax.