H3 - Relief at the Pump. (SL 2026-62)

Overview: S.L. 2026-62 does the following:

• Effective October 10, 2026, immediately suspend through November 30, 2026, the motor fuel tax on all motor fuels, including gasoline, diesel, and alternative fuel. The Department of Revenue and the Department of Agriculture and Consumer Services must notify affected parties as soon as practicable.
• Require that the full benefit of the suspension be passed on to the ultimate purchaser of motor fuel. However, no retailer is required to reduce the price per gallon of motor fuel if the retailer's cost already includes the motor fuel tax because the tax accrued prior to the effective date of the suspension.
• Hold harmless the funds and accounts that would otherwise receive the motor fuel tax proceeds by directing the State Controller to transfer, on a monthly basis, those amounts from the Inflation Reserve.
• Effective October 9, 2026, through December 31, 2026, waive the enforcement of the civil and criminal penalties applicable to a person who uses dyed diesel fuel in a highway vehicle if the use is for farming or agricultural purposes. For purposes of this waiver, farming or agricultural purposes includes crop cultivation, livestock rearing, forestry, aquaculture, and related agribusiness activities. This waiver aligns with the civil penalty relief that the Governor directed the Department of Revenue to provide.
• For the period beginning October 1, 2026, through December 31, 2026, exempt from motor fuel tax the use of dyed diesel used to operate a highway vehicle by farmers, commercial loggers, commercial fishermen, and wildlife managers if those individuals have been issued a sales tax exemption certificate by the Department of Revenue.
• Direct the Secretary of Revenue to disregard the suspension of the motor fuel tax when setting the motor fuel tax rate that becomes effective on January 1, 2027, to the extent the rate is an adjustment of the rate from the preceding calendar year.

Except as otherwise provided, this act became effective October 9, 2026.