California gas tax rebate: who is eligible and how much money will they receive?
The three-tier program, supported by both Newsom and state legislative leaders, would benefit around 23 million California taxpayers.
Democratic California Gov. Gavin Newsom and legislative leaders have agreed to provide as much as $1,050 to millions of California families to help with inflation and rising gas prices.
The three-tier program, supported by both Newsom and state legislative leaders, would benefit around 23 million California taxpayers, handing out rebates to taxpayers making under $250,000.
The $9.5 billion in tax refunds is part of a $12 billion relief plan that is central to a broader $300 billion budget deal that state leaders announced Sunday night.
Dealing with rising prices
“California’s budget addresses the state’s most pressing needs, and prioritizes getting dollars back into the pockets of millions of Californians who are grappling with global inflation and rising prices of everything from gas to groceries,” Newsom, Senate President Pro Tem Toni Atkins and Assembly Speaker Anthony Rendon said in a joint statement.
Under the tax rebate plan, Californians earning as much as $75,000 for individuals or $150,000 for joint filers would receive $350 per taxpayer, plus an additional $350 if they have at least one dependent. A single parent would therefore receive $700 and two-parent families would receive $1,050.
The amount would decrease to $250 per taxpayer for households making as much as $125,000 for individuals or $250,000 for joint filers, and to $200 per taxpayer for households making as much as $250,000 for individuals or $500,000 for joint filers. In both of these tiers, parents would receive an additional $250 or $200, respectively, if they have at least one dependent.
People making more than $250,000 will not receive a rebate.
Inflation accelerated in May, with the consumer price index rising by 8.6%, much higher than economists expected. Inflation has forced US families into paying more for everyday necessities like food and gas.
Despite growing demands from Republican lawmakers, plus an increasing number of Democrats, the plan does not include a broad suspension of the state’s gas tax, which is set to increase by three cents on July 1.
In which states is gas most expensive?
The five states with the highest average regular gas prices today are: