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Bill

AB 2722

Motor Vehicle Fuel Tax Law: suspension of tax.

2025-2026 Regular Session Introduced by Juan Alanis and 16 co-sponsors

California bill to suspend motor vehicle fuel tax, reducing consumer gas costs but potentially creating infrastructure funding shortfall and undermining climate goals.

Re-referred to Com. on TRANS. pursuant to Assembly Rule 96.
#motorvehiclefueltaxlaw #suspensionoftax
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WeVote Research Nonpartisan
Bill Summary · AB 2722

Legislative bill overview

AB 2722 proposes to suspend California's motor vehicle fuel tax, which currently funds transportation infrastructure and maintenance projects. The bill has been referred to multiple committees for review and has undergone author amendments since its introduction.

Why is this important

California's fuel tax generates approximately $2.4 billion annually for roads, highways, and transit systems. Suspending it would directly affect funding for infrastructure maintenance and transportation projects, while providing consumers with lower gas prices at the pump.

Potential points of contention

  • Infrastructure funding gap: Suspending the tax without identifying replacement revenue sources could significantly impact road maintenance, bridge repairs, and public transportation programs that depend on this funding
  • Environmental and climate goals: Reduced fuel costs could incentivize increased vehicle use and fuel consumption, potentially conflicting with California's climate commitments and emissions reduction targets
  • Equity concerns: While all drivers benefit from lower fuel prices, the burden of deferred infrastructure maintenance may disproportionately affect lower-income communities that lack alternative transportation options
  • Temporary vs. permanent impact: The bill's language on whether suspension is temporary or permanent remains unclear based on available information, affecting long-term budget planning

Compiled from official sources — confirm details with the bill’s official record.

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