Brief

Councilmember John S. Lee, seconded by Monica Rodriguez, introduced a resolution calling for the City to advocate for suspension of California's state gas tax when global gas prices spike above 10 percent of the five-year average. The motion aims to provide relief to residents during periods of exceptionally high fuel costs. It was referred to the Rules, Elections and Intergovernmental Relations Committee in April 2026 and remains pending; a Chief Legislative Analyst report was issued in September 2026, and the committee scheduled the item for discussion on September 15, 2026.

Full summary

Councilmember John S. Lee introduced this resolution, seconded by Councilmember Monica Rodriguez, to add to the City's 2025-2026 State Legislative Program official support for legislation or administrative action that would automatically suspend California's gasoline excise tax whenever the global price of a barrel of oil exceeds 10 percent of the five-year average. The resolution argues that high gasoline prices impose a disproportionate financial burden on low- and moderate-income households who rely on personal vehicles for work and daily necessities, and that a price-triggered suspension mechanism would deliver timely, predictable relief without permanently undermining transportation infrastructure funding during stable market conditions. The proposed trigger is tied to global crude oil benchmarks — primarily Brent crude, which more closely reflects international prices than the domestic West Texas Intermediate benchmark. Under the formula, the suspension would kick in when the monthly average price of a barrel exceeds 110 percent of the current five-year average. The Chief Legislative Analyst's September 2026 report notes that using this methodology, the gas tax would have been suspended in March, April, and May of 2026 — a period when prices spiked following the outbreak of hostilities between the United States and Iran in February 2026. Looking further back, the same mechanism would have triggered suspensions for most of 2021, 2022, and 2023, a period during which the City received approximately $546 million in gas tax receipts. The CLA report raises significant concerns that led to a recommendation to simply receive and file the resolution. The State gas tax — set at $0.634 per gallon in fiscal year 2026-27 — is a primary funding source for road maintenance, street resurfacing, Vision Zero safety projects, and capital infrastructure. Los Angeles received an estimated $213.7 million in gas tax revenue in fiscal year 2025-26, with $220.6 million projected for 2026-27. The report also notes that comparable proposals at the State level — S.B. 1035 and A.B. 1745 — have stalled or been voted down, and the Governor has publicly opposed a gas tax holiday. If the Council wishes to proceed despite these obstacles, the CLA recommends adopting an amended resolution that conditions any support on the State guaranteeing it would backfill any lost revenue to the City. The file was referred to the Rules, Elections and Intergovernmental Relations Committee on April 14, 2026. The CLA report was transmitted to the committee in September 2026, and the committee scheduled the item for its September 15, 2026 meeting. No Council vote has been taken. The file remains open and pending in committee.

Activity (5)

• 2026-09-15 Rules, Elections and Intergovernmental Relations Committee received and filed item(s).
• 2026-09-11 Rules, Elections and Intergovernmental Relations Committee scheduled item for committee meeting on September 15, 2026.
• 2026-09-10 Chief Legislative Analyst document(s) referred to Rules, Elections and Intergovernmental Relations Committee.
• 2026-09-09 Document submitted by Chief Legislative Analyst, dated September 9, 2026.
• 2026-04-14 Resolution referred to Rules, Elections and Intergovernmental Relations Committee.

Documents (3)

• 2026-09-15 Report from Rules, Elections and Intergovernmental Relations Committee · report
• 2026-09-09 Report from Chief Legislative Analyst · report
• 2026-04-14 Resolution · other