California Is Sending Out 'Inflation Relief' Payments After Budget Deal Struck | Here's How Much You'll Get
California is issuing "inflation relief" payments after state lawmakers reached an agreement on the 2022-23 budget. The deal also suspends the state's sales tax on diesel.
In a joint statement released on Sunday night, California Governor Gavin Newsom, Senate President pro-Tempore Toni Atkins, and Assembly Speaker Anthony Rendon said the centerpiece of the budget deal is a $17 billion inflation relief package.
They added that the deal would offer tax refunds to millions of working Californians. KCRA reported that the agreement includes giving 23 million Californians direct payments that would be issued through direct deposit refunds or debit cards to tax filers by late October.
The state's Franchise Tax Board estimates that "all" would be released by the end of 2022 or early next year for the state's 17.4 million tax filers who benefit.
Taxpayers will receive their inflation relief payments based on their income level with an additional payment of the same amount if they have at least one dependent.
California to Release 'Inflation Relief' Payments
California is issuing inflation relief payments of up to $1,050 in what the governor called a new "middle class tax rebate." Californians will get their inflation relief package depending on their household income and how many dependents they have.
According to KTLA, single filers making less than $75,000 are set to receive $350. Those earning between $75,001 and $125,000 will receive a $250 payment.
Single filers making between $125,001 and $250,000 will receive $200, while those who make more than $250,001 will not receive a payment.
Joint filers making up to $150,000 will receive $700, while those making $150,001 and $250,000 will receive a $500 payment. Those earning between $250,001 and $500,000 would receive $400, while those joint filers making more than $500,000 will not receive a payment.
Those single and joint tax filers with dependents will receive an additional $350, $250, or $200, depending on their income. Thus, the highest possible payment goes to couples filing jointly with at least one dependent.
They are set to receive $700 plus an additional $350 for a total inflation relief payment of $1,050. Payments will reportedly be issued by direct deposits, like the Golden State stimulus checks sent out last year, and debit cards.
Inflation Relief Package in California
There is also news of a tentative agreement on a gas relief package as Californians struggle with rising gas prices. KCRA reported that beginning October 1, California will suspend the diesel sales tax for 12 months.
According to the budget plan, this will save drivers using diesel fuel about 23 cents per gallon. Additional funding to help people pay for rent and utility bills was also reportedly included in Sunday's deal.
The state was said to provide more than $200 million additional funding for reproductive health care services. California is reportedly set to become the first state to "achieve universal access to health care coverage," but state leaders have yet to provide the details.
Sacramento Bee reported that Newsom wanted a relief program that would send $400 checks to all vehicle owners, capping out at $800 for up to two cars.
The governor preferred to send money using debit cards issued by the Department of Motor Vehicles and a third-party vendor.
The agreed-upon plan targets taxpayers, not vehicle owners like legislative leaders wanted. And it will include money for higher-income earners, providing the middle-class inflation relief that the governor wanted.
READ MORE: Gas Prices in California: How Much Will You Be Paying for Gas in California Amid Price Hikes?
This article is owned by Latin Post.
Written by: Mary Webber
WATCH: Californians to Receive up to $1,050 From 'Gas Tax Rebate' - From CBS Los Angeles