Tentative plan could give tax rebates to Californians dealing with high gas prices

Gas prices over $7.00 a gallon are displayed at a Chevron gas station on May 25, 2022 in Menlo Park, California.
Gas prices over $7.00 a gallon are displayed at a Chevron gas station on May 25, 2022 in Menlo Park, California. Photo credit (Photo by Justin Sullivan/Getty Images)

California Gov. Gavin Newsom and state legislators have come to a tentative agreement to provide millions of families in the state with financial aid to deal with rising gas prices. As of Saturday, average gas prices in California were over $6 per gallon, according to AAA.

According to reports from the Associated Press and the journalism non-profit CalMatters, representatives from lawmakers have made it clear that the deal has not yet been finalized.

According to the Associated Press, Assembly member Miguel Santiago, a Democrat from Los Angeles, announced the plan in a news release late Friday afternoon. A representative for Santiago's office later clarified the deal has not yet been finalized, said the outlet.

“As prices increase on everything from gas to baby formula, this rebate will help the vast majority of California taxpayers, including undocumented Californians, with hundreds of dollars in direct cash assistance, providing critical relief during tough times,” Santiago said of the tentative agreement.

CalMatters reported that the tentative agreement would provide payments up to $1,050 to an estimated 17.4 million taxpayers to help deal with inflation. The proposed three-tier program would benefit people making up to $250,000 and joint filers making as much as $500,000.

Low- and middle-income households would receive more money. Households making as much as $75,000 for individuals or $150,000 for joint filers would receive $350 per taxpayer, plus an additional $350 if they have at least one dependent. A single parent would receive $700 and two-parent families would receive $1,050.

Households making as much as $125,000 for individuals or $250,000 for joint filers, would get $250 per taxpayer, and $200 per taxpayer would go to households making as much as $250,000 for individuals or $500,000 for joint filers. Parents in these tiers would receive an additional $250 or $200, respectively, if they have at least one dependent.

This plan is part of a $300 billion budget deal that state leaders are expected to continue negotiating ahead of the July 1 start of the fiscal year, said CalMatters. Anthony York, a spokesperson for Newsom, denying there was a deal because details could still change until the final budget compromise is publicly announced.

“We’re not taking any issue off the table until the entire budget’s done,” he said.