Gov. Gavin Newsom unveiled his proposal on Wednesday to funnel $11 billion back to taxpayers in the form of $400 debit cards along with a pause on gas taxes and three months of free public transportation as lawmakers look to lessen the pain of surging gas prices amid a booming budget surplus.
Under the proposal, registered vehicle owners would be eligible for $400 in payments for each vehicle they own, capped at two vehicles. There is no income limit to the direct cash back program, which includes electric vehicle owners but excludes people without cars. The direct payments would total $9 billion in relief, Newsom’s office said.
“That direct relief will address the issue that we are all struggling to address – and that’s the issue of gas prices,” Newsom said in a video 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
If approved by the legislature, Californians could see debit cards at their doors steps as soon as July, the governor’s office said.
The package would also provide $750 million in grants to allow transit agencies to provide free transit for three months and over a billion dollars in funding to pause tax increases on diesel fuel and gasoline.
This latest package comes ahead of budget negotiations as lawmakers look to return some of the budget surplus back to Californians. The legislature is also eyeing a constitutional amendment, known as the “Gann Limit,” which would force them to return some money back to taxpayers if they don’t come up with their own proposals to address excess revenues.
In recent weeks Sacramento has seen a flurry of proposals aiming to put cash back in Californians’ wallets as gas prices break records on a near-daily basis and the cost of living continues to surge. However, divisions have emerged on whether the financial relief should be directing money back into the pockets of the state’s wealthy residents alongside their lower-income neighbors.
Last week a group of mostly Democratic lawmakers outlined their proposal to give every taxpayer $400, a plan which was not linked to vehicles or income. Meanwhile, Assembly Speaker Anthony Rendon is working on a plan to provide $200 rebates to taxpayers with additional payments for each dependent for people making $125,000 or less.
Newsom’s gas relief plan:
- The governor proposes $400 direct payments per vehicle, capped at two vehicles.
- $750 million in “incentive grants” to provide free transit for three months.
- Up to $600 million to pause part of the sales tax on diesel for one year.
- $523 million to pause an inflation-related increase in Californian’s gas tax.
- Also calls for $500 million in biking and walking-focused transportation projects
- Fast-tracks $1.75 billion in funding from an earlier zero-emissions vehicle package to promote more zero-emission passenger vehicles and charging infrastructure.
In a statement, Newsom said the plan is meant to take “immediate action” in response to the state’s record gas prices that keep ticking higher even as the national average sink.
“But this package is also focused on protecting people from volatile gas prices, and advancing clean transportation – providing three months of free public transportation, fast-tracking electric vehicle incentives and charging stations, and new funding for local biking and walking projects,” Newsom said.
Check back for more on this developing story.
Source: www.mercurynews.com