Republicans in California introduce bill to suspend gasoline tax for one year

California lawmakers once again have the opportunity to suspend the state’s gasoline tax in an effort to lower prices at the pump for all residents.

Rep. Tom Lackey (R–Palmdale) authored a bill to suspend the gasoline tax for the special session on gasoline prices.

The background story: California Governor Gavin Newsom has called a special session of the legislature to discuss his proposed regulation for oil refineries, which would require them to maintain a minimum reserve of gas in order to reduce price spikes.

• Democratic lawmakers introduced Assembly Bill 1 for the special session on Tuesday and submitted Newsom’s proposal in writing.
• The gasoline tax, currently at $0.60 per gallon, is not mentioned in Newsom’s proposal.

The big picture: Lackey’s proposal, Assembly Bill 2, would suspend the gasoline tax for one year.

• Gas stations would have to show the amount of tax that would have been incurred on the 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 say: “Californians need a break,” Lackey said in a statement to The Sun. “Temporarily suspending the gas tax is a common sense solution to ease the financial pressure on our families, small businesses and communities.”

Flashback: Suspending the gasoline tax has been a tried-and-tested tactic by California Republicans in recent years, but has been repeatedly blocked by Democrats.

Current status: Governor Newsom’s office took action against Lackey on X, calling him “Traffic Tom” and saying the law would cost his district $1.7 billion in investments.

• Lackey, in his response, pointed to the section of the bill calling for increased funding from the General Budget Fund and asked Newsom’s office to read through the bill.