The bills will be heard in their first committee meetings in the coming weeks, likely shaping what will be contentious debates over the future of the gas tax.
SACRAMENTO, Calif — Republican legislators on Tuesday called for a one-year suspension of California’s gasoline tax, arguing the move would provide relief to drivers in a state with some of the highest fuel and gas tax costs in the nation.
Democrats quickly pushed back, warning that suspending the tax could jeopardize funding for transportation infrastructure and may not guarantee lower prices at the pump.
Assembly Bill 1745 by Asm. Jeff Gonzalez would pause California’s 61-cent-per-gallon excise tax for one year. A separate proposal by state Sen. Tony Strickland would go further, seeking to suspend not only the gas tax but also certain state sales taxes on gasoline, low carbon fuel standard costs and cap-and-trade-related expenses — totaling up to $1.08 per gallon in potential savings, according to lawmakers citing data from the California Energy Commission.
“Pause the state gas tax immediately,” said Assemblymember Jeff Gonzalez, a Republican from Indio.
Republican lawmakers argue the gas tax is regressive, affecting all drivers equally regardless of income, and hits rural residents especially hard.
“We are losing the fight of affordability here in California,” said Sen. Marie Alvarado-Gil, a Republican from Jackson.
Strickland, a Republican from Huntington Beach, said the state must act before fuel costs rise further.
“We’ve got to get ahead of this crisis before it really hits,” Strickland said.
According to the California Department of Finance, suspending the gas tax would reduce state revenue by roughly $8 billion annually. Republicans say the loss could be backfilled with money from the state’s general fund, noting the state has money on hand.
“California doesn’t have a revenue problem. It has a wasteful spending problem,” Strickland said.
Alvarado-Gil acknowledged the state faces a budget deficit but said lawmakers should prioritize spending cuts over maintaining current tax levels.
“Although we’re asking for a revenue decrease, we’re asking even more for expenditure decreases,” she said, adding that the state should instead turn towards spending on voter-approved projects, such as the tougher-on-crime Proposition 36.
A spokesperson for Gov. Gavin Newsom pointed to comments the governor made in 2024 opposing repeal of the gas tax.
“There’s nothing about repealing the gas tax that would guarantee lower gas prices,” Newsom said at the time, adding that gas tax revenues fund road and bridge repairs and other infrastructure projects.
In a statement, Democratic Assemblymember Lori Wilson, chair of the Assembly Transportation Committee, countered this is a repeat political move by Republicans. She stated, “Every election year for the past decade, Republicans in targeted seats have introduced this same bill to try to score cheap political points. Eliminating infrastructure funding for the world’s 4th largest economy with no plan or solution is irresponsible and will not advance.”
Some Republicans said the proposal would offer short-term relief but expressed concern about longer-term fuel supply issues, citing refinery closures and studies suggesting gas prices could rise later this year.
“If you cut cap and trade and you incentivize your refineries to stay here and you incentivize oil and gas drilling, we wouldn’t have a problem,” said Assemblymember Stan Ellis, a Republican from Bakersfield.
As of Tuesday afternoon, the national average price for gasoline was about $3 per gallon, according to AAA. California’s statewide average was $4.06 per gallon.
The bills now head to legislative committees in the coming weeks, where their prospects remain uncertain in a Democrat-controlled Legislature.
Meantime, Republicans continue to call for an emergency session, in light of back-to-back refinery closures and dwindling in-state oil production.
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