California will see a summer gas-tax hike. Here’s how drivers could get some relief
California drivers hoping for a reprieve from a scheduled gas tax increase will likely be disappointed.
Gov. Gavin Newsom’s proposal to pause the yearly gas excise tax hike will hit a deadline this weekend. Legislators would need to act by Sunday to prevent the scheduled July 1 increase, because the move must happen 60 days in advance.
“It is clear now that the Legislature will not act in time to provide that immediate, limited relief, but we look forward to working with lawmakers on the Governor’s proposal for direct payments to Californians wrestling with rising prices,” said Alex Stack, Newsom spokesman, in a statement.
Lawmakers, however, are still debating a series of plans that would give motorists cash to help offset high fuel costs.
Three proposals to provide Californians with gas price rebates remain on the table, including one from Newsom and two from members of the Legislature.
The Golden State’s average gas price has climbed along with the rest of the country’s following Russia’s invasion of Ukraine in late February and has hovered in $5-per-gallon range since then. On Wednesday, California’s average price was $5.68 per gallon, while the national average was $4.13 per gallon, according to AAA.
California’s 51-cents-per-gallon gas tax provides money to pay for road and infrastructure repairs. Legislators approved a series of gas-tax increases with Senate Bill 1 in 2017, which later survived a 2018 repeal effort.
Legislature never favored freezing gas tax
Newsom’s plan to freeze the 5.6% gas tax hike dates back to before the invasion — he announced it as part of his January budget proposal.
The Legislative Analyst’s Office in February projected pausing the July tax increase would save motorists about 3 cents per gallon.
Senate Pro Tem Toni Atkins, D-San Diego, and Assembly Speaker Anthony Rendon, D-Lakewood, never got on board with the delaying the tax hike, saying it might not give drivers much relief.
“Gas, food, and other prices are up, so our focus cannot be a small cut to the gas tax that might not get passed on to consumers,” Atkins and Rendon said following Newsom’s State of the State address in March.
After it became clear this week that the Legislature would not move forward with the proposal, Republicans jumped on the opportunity to criticize Democrats for not responding to rising gas prices. GOP leaders have continually been pushing a bill from Assemblyman Kevin Kiley, R-Rocklin, to suspend the gas tax entirely for six months.
“When fuel prices rise again in July, drivers can thank the out of touch politicians in Sacramento who put politics over bipartisan solutions to help all Californians,” Kiley said in a statement.
Democrats’ gas price relief plans
Although Newsom’s gas tax freeze is dead in the water, Democrats are continuing to debate a series of plans that would provide money for Californians to help them cope with fuel costs and inflationary prices.
Newsom in late March unveiled a proposal to give drivers $400 per vehicle — up to $800 — in the form of a debit card from the state. The governor’s plan would also including funding that would provide three months of free public transportation for residents statewide.
Atkins and Rendon also have their own gas price relief plan. The leaders’ proposal is income-limited and would give $200 to all taxpayers and dependents in households earning less than $125,000 per year, or $250,000 for those that file taxes jointly.
Assemblywoman Cottie Petrie-Norris, D-Irvine, is carrying the final rebate plan in Assembly Bill 1616. Petrie-Norris and a group of Democratic lawmakers in mid-March announced the relief proposal, which would give $400 to all taxpayers, regardless of income level or vehicle ownership.
On Wednesday, Petrie-Norris said she thinks pieces of all three proposals will likely end up in a relief plan that will be attached to the revised budget and take effect this summer.
Petrie-Norris said she put forward her bill because she wants to see relief for Californians struggling financially as quickly as possible.
“I’m really disappointed,” she said. “I’m really frustrated, and I think I share this disappointment with Californians and my constituents.”
Petrie-Norris said she’d prefer to see her bill — which is currently in the Assembly Rules Committee — become urgency legislation that would get residents their money sooner than June. But she knows the budget process is the likely destination for relief funding.
“I think we gotta cut the bureaucracy and put something together so we can deliver for Californians,” she said.
This story was originally published April 28, 2022 at 5:00 AM with the headline "California will see a summer gas-tax hike. Here’s how drivers could get some relief."