California lawmakers will once again have an opportunity to suspend the state’s gas tax to lower prices at the pump for all residents.
Asm. Tom Lackey (R–Palmdale) authored a bill for the special session on gas prices to suspend the gas tax.
The backstory: California Gov. Gavin Newsom called a special session of the Legislature to consider his proposed mandate on oil refiners, which includes requiring them to keep a minimum reserve of gas on hand to reduce price spikes.
- Democratic lawmakers introduced Assembly Bill 1 on Tuesday for the special session, putting Newsom’s proposal in writing.
- Newsom’s proposal does not mention the gas tax, which currently sits at $0.60 per gallon.
The big picture: Lackey’s proposal, Assembly Bill 2, would suspend the gas tax for one year.
- Gas stations would be required to provide the amount of tax that would have applied on receipts.
- AB 2 would also require the state to transfer an amount of money equal to the amount collected in the 2021-2022 fiscal year, adjusted for inflation, from the General Fund to the Motor Vehicle Fuel Account in the Transportation Tax Fund.
What they’re saying: “Californians need a break,” Lackey said in a statement to The Sun. “Temporarily suspending the gas tax is a common sense solution to help alleviate the financial pressures on our families, small businesses, and communities.”
Flashback: Suspending the gas tax has been an oft-tried tactic by California Republicans for the past few years, but Democrats have repeatedly blocked them.
State of play: Gov. Newsom’s office went after Lackey on X, calling him Traffic Tom and saying the bill would cost his district $1.7 billion in investments.
- Lackey responded by citing the section of the bill that calls for the funding to be replenished by the General Fund, telling Newsom’s office to read the bill.
