Thursday, 17 March 2022 14:52

California Lawmakers Propose $400 Gas Rebate to Pay Nation's Highest Gas Prices

Written by Madison Hirneisen, The Center Square


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A group of Democratic lawmakers unveiled a proposal March 17 to send $400 rebates to every California taxpayer to bring relief to consumers amidst record-high prices at the pump.

Under the proposal, every California taxpayer---including those who do not own a vehicle---would receive a $400 rebate, which lawmakers say is equivalent to a one-year gas tax holiday.


According to the American Petroleum Institute, Californians pay the highest gas taxes in the nation at 86.55 cents per gallon, including the state’s excise tax rate of 51.1 cents per gallon.


“We know too many Californians are struggling to make ends meet right now,” Assemblywoman Cottie Petrie-Norris, D-Irvine, who introduced the proposal, said during a news conference March 17. “We are here to offer help, we are here to deliver solutions.”


The proposal comes as lawmakers face mounting pressure to deliver relief to consumers impacted by prices at the pump. As of March 17, the average price for a gallon of gas in California reached $5.78 per gallon, according to the American Automobile Association.


The rebate would use a $9 billion portion of the state’s budget surplus to pay fund tax rebates. Lawmakers said they arrived at the $400 figure because it represents the 51.1 cents per gallon excise tax an individual pays annually for a weekly fill up with a car’s 15-gallon tank.


According to Internal Revenue Service data, 29.7 million tax returns were filed in California in fiscal year 2020.


Supporters said March 17 the money would...

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