California 2025-2026 Regular Session

California Assembly Bill AB2722

Introduced
2/20/26  
Refer
3/19/26  
Report Pass
3/19/26  
Refer
3/23/26  
Report Pass
3/24/26  
Refer
3/25/26  

Caption

Motor Vehicle Fuel Tax Law: suspension of tax.

Impact

The suspension of the motor vehicle fuel tax aims to provide immediate financial relief to consumers while also ensuring that companies adhere to the law by passing savings to the end users. Conversely, it raises concerns about potential revenue losses for state funding allocated toward transportation maintenance and infrastructure. By suspending this tax, the state may face challenges in balancing its budget, especially in sectors reliant on transportation funding. Additionally, the bill seeks to enhance the accessibility and usability of environmental data by calling for the development of a statewide data portal, which could bolster the state's environmental management efforts.

Summary

Assembly Bill 2722, introduced by Assembly Member Ellis, proposes significant changes to the Motor Vehicle Fuel Tax Law by suspending the tax on motor vehicle fuels for one year. The bill mandates that any savings from this tax suspension, realized by sellers, must be passed on to the end consumers, significantly impacting consumer expenses related to fuel. Additionally, the bill includes provisions requiring sellers to provide receipts detailing the tax that would have been applied, thereby enhancing transparency in transactions. This legislative maneuver aims to alleviate financial burdens on consumers during financially challenging periods.

Sentiment

The sentiment around AB 2722 appears to be mixed. Supporters laud the tax suspension as a necessary measure to alleviate fuel costs for consumers amidst economic challenges. Conversely, critics express concerns about the long-term implications on state revenues and potential shifts in how environmental data is managed and shared. This highlights a tension between immediate consumer needs and the need for sustainable state financing.

Contention

While AB 2722 aims to provide short-term economic relief, it brings forth discussions on environmental sustainability and fiscal responsibility. Critics argue that without proper funding mechanisms, the bill could weaken the state's capacity to manage environmental data effectively and maintain necessary infrastructure. This contention underlines the broader debate regarding the balance between consumer relief and the long-term health of state resources and infrastructure funding.

Companion Bills

No companion bills found.

Previously Filed As

CA AB1745

Motor Vehicle Fuel Tax Law: suspension of tax.

CA AB1058

Motor Vehicle Fuel Tax Law: suspension of tax.

CA AB1268

Motor Vehicle Fuel Tax Law: adjustment suspension.

CA SB1035

Motor vehicle fuel tax: greenhouse gas reduction programs: suspension.

CA SB1424

Sales and use taxes: zero-emission vehicle fueling.

CA HB2400

Motor fuel tax holiday

CA HB05417

An Act Combining The Petroleum Products Gross Earnings Tax And The Motor Vehicle Fuels Tax.

CA SB359

Use Fuel Tax Law: Diesel Fuel Tax Law: exempt bus operation.

CA HB655

Gasoline and motor fuel taxes, to suspend the state excise taxes on gasoline and motor fuels from April 15, 2026 to June 15, 2026.

CA HB2887

Alternative fuel vehicles; HOV lanes

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