SACRAMENTO—Gov. Gavin Newsom on March 23 announced an $11 billion proposal to ease pain at the pump, which includes providing all Californians with a registered vehicle $400 tax rebates on a debit card.
Rebates would be capped at two vehicles per household.
“We’re taking immediate action to get money directly into the pockets of Californians who are facing higher gas prices as a result of Putin’s invasion of Ukraine,” Newsom said in a statement.
We’re proposing $9 billion in tax refunds to address rising gas prices -- $400 per registered vehicle, up to 2 per person. We’re also proposing grants so public transit can be free for 3 months.
We know Californians are paying at the pump & with this refund, millions get $ back. pic.twitter.com/fNZOT3ds4S — Office of the Governor of California (@CAgovernor) March 23, 2022
The average Californian spends an estimated $300 in gasoline excise tax within a year, according to the Governor’s Office.
Funds would come from the state’s budget surplus. The $400 rebate payments would cost an estimated $9 million.
The proposal will also allocate $750 million for up to three months of free public transportation, $523 million to pause the inflationary rate of the tax for gas and diesel, and $600 million to pause a portion of the sales tax rate on diesel for one year, according to Newsom’s office.
To encourage more residents to bike or walk, $500 million will be granted for active transportation projects.
The proposal will be brought forth to lawmakers in the coming days as the governor plans to work out the details and expedite the process.
If approved, car owners may see payments as early as July.
