ACA 32: Motor vehicle fuel and vehicle operation taxes: imposition, increase, or extension: voter approval.

The California Constitution requires that any change in state statute which results in a taxpayer paying a higher tax be imposed by an act passed by not less than ²/₃ of the members of each house of the Legislature and defines tax for these purposes as any levy, charge, or exaction of any kind imposed by the State, except for specified charges. The California Constitution requires that the revenues from fees and taxes imposed by the state on motor vehicle fuels for use in motor vehicles upon public streets and highways and upon vehicles or their use or operation, over and above the costs of collection and any refunds authorized by law, be used for specified purposes.

This measure would prohibit the Legislature from imposing, increasing, or extending any tax on the sale, storage, or consumption of motor vehicle gasoline or diesel fuel, or on the privilege of a resident of California to operate on the public highways a vehicle or trailer coach, unless that proposed tax is submitted to the electorate and approved by a majority vote. The measure would exempt from this requirement taxes on motor vehicle gasoline or diesel fuel, or on the privilege of operating a vehicle or trailer coach, at the rates that were in effect on January 1, 2017, but would require that any increase of those taxes after January 1, 2017, cease to be imposed unless the increase is approved by the electorate as required by the measure.

Resolved by the Assembly, the Senate concurring, That the Legislature of the State of California at its 201718 Regular Session commencing on the fifth day of December 2016, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California, that the Constitution of the State be amended as follows:

(a)Notwithstanding any other provision of law, the Legislature shall not impose, increase, or extend any tax, as defined in Section 3, on the sale, storage, use, or consumption of motor vehicle gasoline or diesel fuel, or on the privilege of a resident of California to operate on the public highways a vehicle, or trailer coach, unless and until that proposed tax is submitted to the electorate and approved by a majority vote.

(b)This section does not apply to taxes on motor vehicle gasoline or diesel fuel, or on the privilege of operating a vehicle or trailer coach, at the rates that were in effect on January 1, 2017. Any increase in the rate of such taxes imposed after January 1, 2017, shall cease to be imposed unless and until approved by the electorate as required by this section.