SACRAMENTO, Calif. — California Gov. Gavin Newsom on Wednesday unveiled a proposal he believes will offset rising gasoline prices in the state, offering every vehicle owner in the state a $400 tax refund in the form of a debit card.
Newsom’s plan will go to the registered owners of vehicles, with a maximum of $800 to persons who own more than one vehicle, the San Francisco Chronicle reported.
The debit cards are part of an $11 billion package Newsom said would help residents deal with soaring prices of gasoline, which are now averaging $5.87 per gallon of regular unleaded, the Los Angeles Times reported. The cost of gasoline in California is the highest in the nation, according to the newspaper.
NEW: we’re proposing $11 BILLION in relief, including a $9 billion tax refund for rising gas prices.
— Gavin Newsom (@GavinNewsom) March 23, 2022
- $400 per registered car
- 3 months of free public transitpic.twitter.com/XsAn0kuokP
Newsom’s proposal also includes pausing the sales tax on diesel fuel, pausing the inflation increase for the state gasoline tax, and providing three months of free public transit to residents statewide, KSBW-TV reported. Newsom’s proposal would earmark $750 million to transit and rail agencies, enough to give free rides to 3 million people per day, the AP reported.
Newsom said the rebates would cost the state about $9 billion, according to The Associated Press.
“That direct relief will address the issue that we are all struggling to address and that’s the issue of gas prices,” the governor said.
Newsom’s plan must be approved by the state Legislature, the Times reported. Newsom wants state lawmakers to approve the rebate plan as part of the state budget so payments can begin in July. State Republicans have demanded the state provide immediate relief by suspending California’s gas tax of 51.5 cents per gallon, according to the Chronicle.
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