This bill proposes a temporary reduction or suspension of the state tax on highway fuels based on the average retail price of unleaded regular gasoline for a three-month period from June 2022 to August 2022. The State Treasurer, in consultation with the Office of the Economist, will determine the average retail price per gallon of unleaded regular gasoline each month. Depending on this price, the tax rates will be adjusted: no reduction if the price is below $4.50, a 50% reduction for prices between $4.51 and $5.00, a 75% reduction for prices between $5.01 and $5.50, and no tax 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.

Additionally, the bill includes provisions to appropriate necessary funds from the Sales and Use Tax revenues to offset any losses in motor fuel tax and petroleum products gross receipts tax revenues resulting from these tax adjustments. These funds will be deposited into the Transportation Trust Fund, which supports the state's transportation system and pays for debt service on transportation bonds. The bill also ensures that these appropriated amounts are considered in the State Treasurer's calculations for the annual tax rate on 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.