CA AB1268

Authorizes the Governor to suspend the annual California Consumer Price Index adjustment to the motor vehicle fuel tax (gas tax) starting July 1, 2026, if determined the increase would impose an undue burden on low-income and middle-class families

Requires the Governor to notify the Legislature by January 10 of the intent to suspend the rate adjustment, with the Department of Finance submitting a proposal to maintain equivalent transportation funding levels

The Governor must wait at least 30 days after notifying the Legislature before officially proclaiming the suspension

Updates statutory references from "State Board of Equalization" to "California Department of Tax and Fee Administration" to reflect the 2017 transfer of tax administration duties

Takes effect immediately as a tax levy