California: Gov. Gavin Newsom Fails to Stop Gas Tax Increase, Promises Direct Payments Instead

California lawmakers are unlikely to halt the automatic summer increase of gas taxes ahead of the May 1 deadline, the office of Governor Gavin Newsom said on Monday.

It can be recalled that the California governor expressed his support in helping the state's motorists experiencing pain at the pump by waiting to implement a 5.6 percent tax hike schedule that is slated to take effect on July 1, Fox Business reported.

The amount collected from the gas is known to be used in funding roads and other infrastructure projects. California's Legislative Analyst's Office projected that the tax will generate about $8.8 billion in revenue during the 2021 to 2022 fiscal year.

To stop the gas tax hike in California that will take effect on July 1, lawmakers from the state need to pass legislation by Sunday as an early-action budget item, according to a Politico news report.

However, California lawmakers have not yet introduced any legislation related to the matter.

"It is clear now that the Legislature will not act in time to provide that immediate, limited relief," Newsom spokesperson Alex stack said in a statement, per Fox Business.

To date, California has the highest gas tax in the nation, amounting to 51 cents per gallon. At the beginning of July, the levy will rise to 53.9 cents per gallon.

California Governor Gavin Newsom Proposes $11B Relief Package Over Higher Gas Prices

Earlier in March, California Governor Gavin Newsom introduced an $11 billion relief package for state motorists in response to the continued gas price hike in the state.

According to Newsom's office, the relief package would include $9 billion in tax refunds to Californians, which would allow $400 direct payments per vehicle, capped at two vehicles per person.

The relief package would also offer $2 billion in relief for free public transportation for three months, pausing a portion of the sales tax rate on diesel and suspending the inflationary adjustment when it comes to gas and diesel excise tax.

In addition, the relief package would also provide $500 million in support to active transportation programs, including walking and biking projects.

"Helping offset the impact of inflation on California residents remains a top priority for the governor, and his revised budget will include proposals to help Californians keep pace with rising costs," Newsom's office said in a statement, per Bloomberg via Yahoo! News.

Meanwhile, Senate President pro-Tempore Toni Atkins and Assembly Speaker Anthony Rendon expressed in a joint statement that they are ready to extend their help as soon as Governor Gavin Newsom joins them in supporting a plan that will provide stronger relief for families in California.

California Gas Prices

According to American Automobile Association (AAA), via Fox Business, a regular gallon of gas has an average price of $4.13 as of Wednesday. However, the state of California has the steepest prices in the country as of Wednesday.

Data from AAA revealed that the average price of regular gasoline per gallon in the state is $5.68.

In some parts of the state, prices of gasoline are even higher, including the county of Mono which has an average price of $6.61 per gallon.

This article is owned by Latin Post.

Written By: Joshua Summers

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