California Lawmaker Proposes Suspending Gas Tax for One Year

Assembly Bill 1745 aims to provide immediate relief at the pump as gas prices surge in the state.

Published on Mar. 2, 2026

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As gas prices in California continue to climb amid global market pressures and the state's transition to summer-blend fuel, a state lawmaker has introduced a bill to suspend the state's motor vehicle fuel tax for one year. Assembly member Jeff Gonzalez of Indio has proposed Assembly Bill 1745, which would temporarily pause the 61-cent-per-gallon gas tax to provide relief to drivers facing affordability challenges.

Why it matters

California currently has the highest average gas prices in the nation, with drivers paying an average of $4.63 per gallon. The proposed tax suspension is aimed at addressing the state's affordability crisis, as Californians are grappling with higher costs for groceries, housing, and fuel. Supporters argue that temporary gas tax relief could provide meaningful short-term financial relief to working families.

The details

AB 1745 is designated as an urgency statute, meaning it would take effect immediately if passed by a two-thirds vote of the Legislature. The bill requires that any savings from the tax suspension be passed directly on to drivers at the pump, and gas stations would have to show on receipts how much tax would have been charged if the suspension were not in place. Businesses that fail to pass on the savings could face penalties for unfair business practices.

  • AB 1745 was introduced on February 9, 2026.
  • The proposed tax suspension would last for one year.

The players

Jeff Gonzalez

Assembly member from Indio, California who introduced AB 1745 to suspend the state's gas tax for one year.

California

The state where gas prices have reached the highest average in the nation, currently at $4.63 per gallon.

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What they’re saying

“Californians are hurting under the weight of our state's affordability crisis. Families are paying more for groceries, housing, and especially fuel, and they need some breathing room. Suspending the state gas tax for one year would provide immediate relief at the pump, and the lost revenue would be responsibly backfilled through the General Fund so critical infrastructure projects remain on track.”

— Jeff Gonzalez, Assembly member (California Post)

“Affordability should not be a partisan issue. I hope my colleagues on both sides of the aisle will join me in prioritizing Californians. The constituents in my district sent me to Sacramento to fight for them and lower their cost of living, and that is exactly what I am doing.”

— Jeff Gonzalez, Assembly member (California Post)

What’s next

The bill will now move through the legislative process, where it will require bipartisan support to meet the two-thirds threshold needed for passage as an urgency measure.

The takeaway

This proposed suspension of California's gas tax highlights the state's affordability challenges and the need for lawmakers to find ways to provide relief to residents facing higher costs for essential goods and services. The bipartisan support required for the bill's passage will test the legislature's ability to prioritize the concerns of working families.