Newsom Offers California Car Owners $400 Rebates, Partial Gas Tax Pause
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California Gov. Gavin Newsom would send car owners $400 debit cards and partially pause gasoline taxes to address high gas prices, he said March 23.
The $11 billion relief package offered by the Democratic governor requires legislative approval. Newsom’s idea is competing with similar proposals from Democrats and Republicans in the state Legislature to provide various rebates or tax relief to help consumers facing high gas prices and inflation.
“We’re taking immediate action to get money directly into the pockets of Californians who are facing higher gas prices as a direct result of Putin’s invasion of Ukraine,” Newsom said in a news release.
NEW: we’re proposing $11 BILLION in relief, including a $9 billion tax refund for rising gas prices.
- $400 per registered car
- 3 months of free public transitpic.twitter.com/XsAn0kuokP — Gavin Newsom (@GavinNewsom) March 23, 2022
Californians could receive $400 per vehicle for a maximum of $800 for two vehicles. Eligibility would be based on vehicle registration, not tax records, to be sure the money reaches those who don’t file tax returns. Electric vehicle owners would be eligible. The money would come on debit cards, and would cost $9 billion total.
Newsom would pause part of the sales tax imposed on diesel fuel and an annual inflation adjustment to the gas and diesel excise tax this year.
He also wants to provide $750 million in grants to local transit agencies so Californians can ride free for three months, and accelerate $1.75 billion in planned funding for electric vehicle charging stations and infrastructure.
Assembly Republican leader James Gallagher said the governor’s plan would take too long because it must be negotiated with lawmakers over the next few months. Republicans will try again March 24 to vote on the Assembly floor on a six-month suspension of the 51-cents-per gallon excise tax, he said.
“July? Really? Assembly Republicans have a straightforward plan to immediately lower gas prices,” Gallagher said on Twitter.
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