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 Bill Text - AB-1783 Vehicle miles traveled: local tax and state fund prohibition.

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 |Add To My Favorites |Track Bill | Version: 03/19/26 - Amended Assembly
 02/09/26 - Introduced

 AB-1783 Vehicle miles traveled: local tax and state fund prohibition.(2025-2026)

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 Date Published: 03/19/2026 09:00 PM

AB1783:v98#DOCUMENTBill Start

 Amended
 IN 
 Assembly
 March 19, 2026

 CALIFORNIA LEGISLATURE—
 2025–2026 REGULAR SESSION

 Assembly Bill

No. 1783

Introduced by Assembly Member DeMaio

February 09, 2026

 An act to add Chapter 5.5 (commencing with Section 16643) to Part 2 of Division 4 of Title 2 of the Government Code, and to add Chapter 1.2 (commencing with Section 7283.61) to Part 1.7 of Division 2 of the Revenue and Taxation Code, relating to taxation. vehicle miles.

LEGISLATIVE COUNSEL'S DIGEST

AB 1783, as amended, DeMaio.
 Additional local taxes: vehicle Vehicle miles traveled tax. traveled: local tax and state fund prohibition.

(1) Existing law sets forth various provisions on the use of state funds, including by prohibiting the use of a grant of state funds to assist, promote, or deter union organizing.

This bill would prohibit a state agency from expending funds for the study, planning, testing, design, implementation, administration, or evaluation of a tax, fee, assessment, or charge based on vehicle miles traveled (vehicle miles purposes). The bill would require the reversion of funds appropriated from the General Fund to another fund for vehicle miles purposes and would require the deobligation of encumbered but unexpended funds for those purposes. The
 bill would require the Department of Finance to, within 60 days of January 1, 2027, identify all relevant appropriations and ensure their reversion or transfer. The bill would additionally prohibit any future Budget Act from appropriating funds for vehicle miles purposes unless expressly authorized by statute, as described.

Existing

(2) Existing law authorizes the legislative body of a city or county to impose various taxes, including occupancy taxes and sales and use taxes. Existing law also prohibits a city and county form imposing certain taxes, such as a tax upon income. 

This bill would prohibit a city, county, or any political subdivision thereof from imposing a tax, fee, assessment, or charge, that is calculated, in whole or in part, based on the number of miles traveled by a motor vehicle. The bill would not prohibit the collection of tolls for the use of specific facilities, as provided. The bill would provide that any existing program, pilot program, regulation, or administrative action inconsistent with this prohibition is void and unenforceable.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

Digest Key

 Vote:
 MAJORITY 
 Appropriation:
 NO 
 Fiscal Committee:
 NOYES 
 Local Program:
 NO 

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Chapter 5.5 (commencing with Section 16643) is added to Part 2 of Division 4 of Title 2 of the Government Code, to read:

 CHAPTER
 5.5. Prohibition on Use of State Funds

16643.

 (a) Notwithstanding any other law, including any provision of the annual Budget Act or any other statute making an appropriation, a state agency shall not expend funds for the study, planning, testing, design, implementation, administration, or evaluation of a tax, fee, assessment, or charge based on vehicle miles traveled.

(b) Any funds appropriated from the General Fund to another fund for the purposes described in subdivision (a) that remain unencumbered as of January 1, 2027, shall revert to the General Fund to the extent permissible by law.

(c) Any encumbered but unexpended funds for the purposes described in subdivision (a) shall be deobligated to the extent permissible
 by law and returned to the General Fund.

(d) The Department of Finance shall, within 60 days of January 1, 2027, identify all appropriations subject to this section and ensure their reversion or transfer pursuant to subdivisions (b) and (c).

(e) Any future Budget Act shall not appropriate funds for the purposes described in subdivision (a) unless expressly authorized by statute that is enacted after January 1, 2027, and that specifically references this section.

SECTION 1.SEC. 2.