This Is How Much Money You’ll Get From the California Gas Rebate

California is sending money directly to millions of residents to help with rising costs and high gas prices. 

The payments, which started going out Oct. 7, range from $200 to $1,050, depending on income and other factors. About 18 million payments will be distributed over the next few months, benefiting up to 23 million Californians. The cash payouts are part of a June budget deal

CalMatters talked to the state’s Franchise Tax Board to parse what all this means for you. Check out our tool at the bottom of this article to find out how much you’ll get.

Are you eligible?

To be eligible, you need to have filed a 2020 California tax return by Oct. 15, 2021. There’s an exception for people who did not file by the October deadline because they were waiting on an Individual Taxpayer Identification Number (so long as they filed by Feb. 15, 2022). 

People who didn’t file taxes for 2020, including some seniors and disabled people, will be left out. 

People who can be claimed as dependents for tax purposes won’t get their own payments. 

The payments also won’t go to married or domestic partners who have an adjusted gross income over $500,000. Same goes for many individuals who have adjusted gross incomes over $250,000.

You also had to be a California resident for at least six months of 2020, and be a resident when your payment is issued. 

Undocumented Californians with a valid taxpayer number or Social Security number, who filed complete 2020 tax returns and meet all of the eligibility requirements, can receive the payments.

You don’t need to send any additional forms, or fill out any application to get the payment.

How will you get the payment?

People who are eligible for the payment will get it either via a direct deposit to their bank account or by mailed debit card, according to the tax board. Generally, people who filed their 2020 tax return online and received their state tax refund via direct deposit will get a direct deposit. Most other people who are eligible will get debit cards in the mail. The envelope will be clearly marked with the phrase “Middle Class Tax Refund.”

When will you get the payment?

The first round of payments will go to people who received one of the two Golden State Stimulus payments from 2021 and are eligible for a direct deposit. The first round of payments are expected to go out between Oct. 7 and Oct. 25. 

The rest of the direct deposits are expected to go out between Oct. 28 and Nov. 14. The tax board expects 90% of direct deposits to be sent out in October, according to its website. 

Debit cards for people who got one of the Golden State Stimulus payments are expected to be mailed out between Oct. 25 and Dec. 10. All of the remaining debit cards are expected to be mailed by Jan. 15

Why can’t they all be sent out at once? “There are constraints on the number of direct deposits and mailed debit cards that can be issued weekly,” Franchise Tax Board spokesperson Andrew LePage told CalMatters. “Logistically it takes time to deliver approximately 18 million payments to Californians effectively and accurately, protecting both taxpayers and California.”

Click here to read the full article at CalMatters

California Democrats Refuse to Pass Gas Tax Relief

AB 1638 would have saved Californians 51 cents a gallon for about 6 months

Democrats in the California Legislature refused to pass AB 1638 by Assemblyman Kevin Kiley (R-Granite Bay) which would have suspended the state’s gas tax to provide immediate relief Californians. If passed, it would have saved Californians 51 cents a gallon for about 6 months.

AAA reports the national average for a gallon of gas is $4.316, and California’s average is $5.750. gas in Mono County costs $6.501 per gallon, and Napa County is $5.947.

“Today the Republican and Independent Members of the Assembly voted to save Californians 51 cents per gallon by suspending the gas tax,” Kiley said following the vote. “In addition, 18 members abstained from the vote. Unfortunately, the Supermajority rounded up enough votes to deny struggling Californians this modest measure of relief.”

When asked on Monday about the Republican idea to temporarily halt the whole gas tax, Erin Mellon, Newsom’s communications director wrote, “the Republican’s proposal can be manipulated to help line the pockets of petro-dictators and oil companies who are benefiting from the spike in oil prices across the world. The governor has proposed a tax rebate to provide billions in direct relief to Californians who are suffering from rising gas prices across the country, a direct result of [Russia’s President Vladimir Putin’s] war,” ABC7 reported.

“We have a $65 billion surplus here in California, so we can backfill that money,” said Assembly Republican Leader James Gallagher.

Kiley added, “Our state’s political leadership has never been so out of touch.”

California drivers are still faciing the switch to the summer blend gas, a higher-grade fuel which can add up to 15 cents per gallon to the cost of a fill-up, and lowers your gas mileage. Most Californians already know that for every tank of gas, $10 of the total cost is state-imposed gas taxes, thanks to Senate Bill 1, signed into law by then Gov. Jerry Brown in 2017, which increased the gas tax by 12 cents per gallon, and increased automobile registration fees by more than $175, the Globe reported.

Click here to read the full article at the California Globe

Working Californians Hit Hard By Gasoline Prices

A recent column in this space was headlined “Inflation, the cruelest tax.” Well, if inflation is the cruelest tax, then inflation’s impact on gasoline, combined with the nation’s highest tax, can only be characterized as “cruel and unusual punishment.”

In addition to inflation and taxes, other government policies related to petroleum are counterproductive. These include regulatory burdens and open hostility to the entire petroleum industry currently on display in both Washington and Sacramento. All this adds up to a lot of unnecessary pain being inflicted on the middle class and working poor.

But now, progressive politicians are looking at poll numbers with alarm as they discover that most Americans believe the nation is on the wrong track, due in large part to feckless and incompetent leadership. Rather than fix the problems, however, the reaction of both the Biden and Newsom administrations has been to deflect blame.

A couple of months ago, the Biden administration blamed rising fuel costs on supply chain issues. Then, returning to an old excuse resurrected when the need arises, the blame shifts to the “greedy oil companies.”

But even the most artful political spin is unlikely to change the public’s understanding of who is at fault. Republicans are replaying the video clip on a constant loop where Biden stated unequivocally, “No more drilling on federal lands. No more drilling, including offshore. No ability for the oil industry to continue to drill, period.” Moreover, the attempt to blame the war in Ukraine is especially easy to expose as unfounded. Gas prices were already at record levels before the hostilities began.

In California, Gov. Newsom is attempting to blunt the political backlash by promising some sort of rebate to taxpayers out of the state’s massive surplus. But any notion that he would do so out of the goodness of his heart would be in error. Taxpayer advocates in 1979 sponsored the Gann Spending Limit which voters overwhelming approved. It is the Gann Limit, not Newsom’s benevolence, that might afford some relief for California drivers filling up their tanks.

If skepticism among voters when it comes to energy policy is high nationally, it is even more so in California due to the long history of misspending and gas tax proceeds. For example, in 1990, voters were told that California’s roads, freeways and bridges were crumbling and that spending on transportation was so seriously inadequate that a gas tax increase was desperately needed to save California from ruin. Fast forward to 2017 with the infamous passage of Senate Bill 1, a massive tax increase of another 12 cents per gallon on gasoline, an additional 20 cents per gallon on diesel fuel and a sharp increase in the cost of vehicle registration.

Voter anger at high gas prices might be less intense if they believed they were getting good value in the form of well-maintained roads and highways. But California consistently ranks in the bottom ten of all states in highway maintenance despite having the highest gas tax.

Our political leaders claim that the pain we’re feeling is because addressing climate change is our highest priority. But many of the restrictions they impose are counterproductive to environmental well-being. For example, rather than encourage drilling in North America, we are increasingly reliant on oil shipped from overseas, including from despotic regimes. But oil tankers run on massive diesel engines and foul our ports. How does that help address climate change?

Click here to read the full article at the OC Register

Time to Cut Gas Taxes?

The Bureau of Labor Statistics announced earlier this month that energy prices in the U.S. rose 33 percent for the 12 months ending November.  In many regions of California, prices rose even higher.

In the L.A.-Long Beach-Anaheim region, energy prices jumped 35 percent. In the Inland Empire, prices shot up 36 percent.  And in the San Francisco area, prices climbed 25 percent for the 12-months ending October (the latest available data).  Analysts attribute much of the increase to the price of gas.

Californians now pay $4.67 per gallon at the pump, compared to an average of $3.32 for the rest of America. But what most Californians don’t realize is that their dollars aren’t all going to local gas station owners or far-flung oil companies. A whopping 67 cents of every gallon goes to state taxes and 18 cents to Federal taxes.  This prompted one California lawmaker to title his op-ed: “I’m a Democrat and it’s time for our government to stop making gas more expensive.”

Congressman Josh Harder (CA-10) from the Central Valley reminded his colleagues in Sacramento that the massive infrastructure bill passed last month was already going toward fixing roads and bridges.  The “kicker,” Harder wrote, is that “our families are getting taxed twice at the pump for a service — rebuilding our infrastructure — they’re only getting back once.”

He pointed out that state governments, soon to receive billions in federal infrastructure money, “shouldn’t fleece drivers to pay for roads and bridges the federal government is already paying to fix, especially as businesses are recovering from the pandemic. Instead, state lawmakers across the country should freeze and lower these gas taxes to put money back in the pockets of working families.”

Refreshing the memories of Sacramento lawmakers, the gas tax, Harder wrote, was expected to raise $5 billion annually when it was implemented in 2017. But along came a $31 billion budget surplus for 2022 and another $30 billion in federal dollars from the new bipartisan infrastructure law.  Awash in cash, you would think that lawmakers could afford a little generosity and offer some much-needed tax relief to Californians.

Click here to read the full article at the Pacific Research Institute