Battle Rages Over California’s 51-Cent Gas Tax

Blue San Diego County has joined forces with California Republicans who are dissatisfied with Gov. Gavin Newsom’s proposed $400 gas tax rebate and want a suspension at the pump.

Motorists in the Golden State pay 51 cents a gallon in tax, the nation’s highest, which is supposed to pay for the upkeep of the state’s dilapidated roads and bridges. Voters approved a series of taxes when gas was in the $2 range, but as of today, the average price of gas in the Golden State is $5.91. The national average is $4.24.

Assemblyman Kevin Kiley has called for a floor vote twice to bring the gas tax repeal bill out of a committee, but each time, the Democratic supermajority has blocked this. The most recent vote was on March 24. A dozen centrist Democrats who represent blue-collar districts hit especially hard by the recession abstained from voting.

“We will keep asking until they pass it. In the near future, we will give it another try,” said Kiley, a frequent Newsom critic who is also running for Congress. “It’s fine to have a tax rebate because we have a [general fund] surplus, but that’s not an excuse to not do suspension.”

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Other states such as Connecticut and Maryland voted to suspend their gas taxes, but California politicians are obsessed with taxing its residents, Kiley said.

Earlier this month, San Diego became the first county to support a gas tax suspension and sent Newsom a letter asking for this. Orange County followed.

“People in my district are suffering from these outrageous gas prices,” San Diego County Supervisor Joel Anderson told a local CBS affiliate. “No one should have to choose between paying their monthly bills and affording to put gas in their car, especially when the overwhelming majority of my constituents rely on motor vehicles and there is no feasible public transportation alternative.”

Newsom has steadfastly refused a holiday at the pump and instead unveiled an $11 billion proposal last week that includes the $400 rebate for each registered vehicle and free public transit for three months. It also halts a yearly increase in the gas tax and promotes green alternatives such as more electric vehicle charging stations.

“We’re taking immediate action to get money directly into the pockets of Californians who are facing higher gas prices as a direct result of Putin’s invasion of Ukraine,” Newsom said in a press release.

The Legislature must vote on the measure, and infighting has already begun. Democratic leaders don’t want high-income earners to receive the rebate. Instead, they want $200 for every taxpayer and child with income less than $125,000 for single filers and $250,000 for joint filers, ABC News reported.

None of these proposals take into account equity, such as the difference between truck drivers who drive thousands of miles per month compared to motorists who work from home. Regardless, given the state’s propensity for red tape, no one will receive any funds for about six months, while a tax suspension is immediate, Kiley predicted.

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“It’s really sad. You have people who have to drive a lot far to work,” Kiley said. “And if you are someone who doesn’t have to make a lot in the first place, you would think our Legislature and governor would make it less hard for them. Instead, they want to just slam the door shut.”