What you need to know
- Registered car owners will receive $ 400 per vehicle reduced to two vehicles under the California discount program.
- Those who own electric vehicles or do not use petrol will be eligible.
- The gas price discount scheme must be approved by the state legislature. The first payments will not start until July.
Californians who own cars can receive up to $ 800 from the state to help set the record High gas prices Under a proposal announced Wednesday by Governor Gavin Newsom.
Registered owners will receive $ 400 per vehicle, with a limit of two vehicles. Those who own electric vehicles or do not use petrol will be eligible. But most businesses with vehicles do not qualify.
Newsom estimates that the rebates will cost the government about $ 9 billion. The governor’s office said the payments would begin in July, if approved by the state legislature.
“That direct relief will solve the problem we are all struggling to solve, and that is the problem of gas prices,” he said.
The regular grade case is the state record of $ 5.88 per gallon in California, the highest in the country and $ 2 higher a year ago. According to AAA.
“The tax refund will take the form of $ 400 debit cards for registered vehicle owners, and individuals will be eligible for two payments,” the governor’s office said in a statement. “The proposal offers up to two $ 400 discounts per vehicle to support families with more than one vehicle in use.
There is no income limit in the plan.
For those who do not have cars, Newsom wants the government to pay their bus or train fare for three months. Newsom said his proposal would give $ 750 million to transport and rail companies, which would be enough to provide free rides to 3 million people a day.
Another $ 600 million a year is to “suspend” a portion of the state sales tax on diesel fuel, and another $ 523 million to stop the planned increase in the state gas tax this summer.
Elected leaders of the state have been debating for weeks what to do about the price hike. A large number of Republicans in the state legislature want to suspend the state gas tax, the second-highest in the country at 51 cents per gallon.
But Democrats say it will benefit oil companies. Instead, they prefer to give taxpayers a discount because they know it will go directly to the consumer.
The Newzome project must be approved by the legislature. Democrat leaders have already stated that they do not support any plan to suspend the state’s gas tax increase. Many Democrats do not want to pay everyone, including millionaires and millionaires. They prefer targeted discounts for specific income levels.