This bill proposes a temporary reduction or suspension of the state tax on highway fuels for a three-month period from June 2022 to August 2022, based on the average retail price of unleaded regular gasoline. The State Treasurer, in consultation with the Office of the Economist, will determine the average retail price each month, which will dictate the tax rates. If the average price is below $4.50, no reduction will occur. A 50% reduction applies if the price is between $4.51 and $5.00, a 75% reduction if between $5.01 and $5.50, and no tax will be imposed if the price exceeds $5.50. The bill mandates that any tax reductions be passed on to consumers through lower retail prices for highway fuels.

To address potential revenue shortfalls from the motor fuel tax and petroleum products gross receipts tax due to these reductions, the bill appropriates necessary funds from the Sales and Use Tax revenues to the Transportation Trust Fund. This ensures that the state's transportation system, which relies on these tax revenues for debt service on transportation bonds, remains funded. Additionally, the bill includes provisions for the State Treasurer to consider these appropriated amounts when determining the annual tax rate for highway fuel. The act will take effect immediately and will expire on September 22, 2022, with certain provisions remaining in effect until their impacts are resolved.