What will I get from California’s $9.5-billion gas tax relief plan?

After months of debate, Gov. Gavin Newsom and California’s Democrats have reached a budget agreement on a gas tax break in the face of rising gas prices.

“California’s budget is addressing the state’s most pressing needs and prioritizing putting dollars back into the pockets of millions of Californians struggling with global inflation and rising prices for everything from gasoline to food,” Newsom, Senate President Pro Tem Toni G. Atkins (D-San Diego) and Congregation Speaker Anthony Rendon (D-Lakewood) in a joint statement.

The basics

  • The plan provides $9.5 billion in tax refunds for Californians, giving families up to $1,050 this fall.

Sliding income scale

The plan would provide reimbursements on a tiered scale based on three income brackets:

  • A person earning up to $75,000 per year would receive a refund of $350, which would double to $700 for joint applicants earning up to $150,000. Households would receive an additional payment of $350 if they claimed dependents, for a maximum refund of $1,050.
  • At the next income level, individual filers earning up to $125,000 would get a $250 rebate. Households applying together and earning up to $250,000 would receive $500. Children or other dependents would qualify the taxpayer for an additional payment of $250, giving families in the income bracket entitlement to a total of up to $750.
  • Individuals earning up to $250,000 would receive $200, and joint applicants earning up to $500,000 would receive $400. Households with dependents would receive an additional $200, making this income bracket eligible for a maximum of $600.

changes

Timed coordination

  • Though Newsom initially hoped to put money back in people’s pockets this summer, disagreements among Democrats in the state Capitol delayed the schedule by months. Refunds to offset the highest fuel costs of any state in the nation probably won’t go out until October.

What’s next

  • A deal was announced on Sunday. However, the plan has yet to be voted on in the Senate and the state assembly, which is expected to take place later this week.

federal gas tax relief

  • Last week, President Biden asked Congress to suspend the state gas tax until September, a move he said could save 18 cents a gallon and “give just a little relief to families.” It’s not clear if Biden can persuade Congress to join the fuel tax holiday, as Republicans and some Democrats have been skeptical that it would ultimately result in drivers saving money.

https://www.latimes.com/california/story/2022-06-27/what-will-i-get-from-californias-9-5-billion-gas-tax-relief-plan-what-you-need-to-know What will I get from California’s $9.5-billion gas tax relief plan?

Alley Einstein

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