Stimulus Payment: California to Give $400 in Proposed New Gas Tax Rebates

Regardless of their income status, California locals who own a car could soon get a $400 stimulus payment for individuals and $800 for couples for gas tax rebates.

Due to the rising cost of gas prices, state lawmakers from the Democratic party plan to submit a new proposal to "soften the blow" of this added expense, per the Los Angeles Times.

Assembly Speaker Anthony Rendon and Senate President Pro Tem Toni Atkins initiated the proposal, and eight other Democrats, by writing a letter to California Gov. Gavin Newsom. They outlined that the stimulus payment would be the better alternative instead of the other plan to suspend gas taxes as they believe this would affect the state's funds for crucial transportation programs.

Reports also cited that Newsom is eager to work with the Legislature, who shall come up with gas tax rebates. Apparently, during his State of the State address, Newsom emphasized that the money should be back in the pockets of Californians who have been heavily impacted by the gas price increase.

The Democrat's plan has the backing of some Republican leaders. However, some of them will still support proposals for the gas tax suspension.

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Qualification for Stimulus Payment for Gas Tax Rebates

Dee Dee Myers, a senior staff member with Newsom's office, said that the stimulus payment for gas tax rebates would go to any Californian who owns a car. Even undocumented locals and residents living in mansions could benefit from the $400 pay.

Yet, according to ABC10, there are still no specifics to the proposal. Assemblyman James Gallagher said that the governor has announced many programs during his address but "not a lot of details."

California could afford to provide more stimulus payments as the state has incurred a $60 billion surplus in its recent budget. Gallagher said, however, that the surplus proves that California overtaxes its residents.

Meanwhile, Myers said that the details of the new stimulus payment proposal for gas prices could be ironed out with the budget revision in May. For now, however, Myers said that the governor's office assures Californians that "help is coming."

Gas Tax Rebates Will Still Have to Be Approved

Assembly Member Cottie Petrie-Norris, however, hopes that the gas tax rebates will be disbursed this spring and said that they would work hard to make this happen. Gallagher agreed with Petrie-Norris and noted that this relief is an urgent need due to the unstoppable high cost of living, not just the gas prices.

But it will take some time for the proposal to become law as deliberations between the Democrats and the Republicans could stall this plan.

Nearly 82 percent of Californians own a car, with at least 10 percent driving a vehicle that does not use gasoline. The average commute in the state is about 30 minutes, but at least nine to 13 percent spend their time on the road for an hour.

Per the California Department of Tax and Fee Administration, the average gas tax in California is $0.511 per gallon between July 2021 to June 2022. If the gas tax is still the same after June 2022, the stimulus payment, if approved, will cover roughly 782.8 gallons, which industry analysts say is quite a significant number. It could mean that the $400 gas rebate may cover gas taxes for an entire year.

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