Please ensure Javascript is enabled for purposes of website accessibility
California Tax Rebate Deal Reached. How Much Will You Get ... and When?
gvw_calmatters
By CalMatters
Published 2 years ago on
June 27, 2022

Share

 

Gov. Gavin Newsom and legislative leaders have agreed to provide as much as $1,050 to millions of California families to help with rising gas prices and inflation, they confirmed Sunday night.

The three-tier program would benefit an estimated 23 million California taxpayers, including individual filers making as much as $250,000 and joint filers making as much as $500,000, with low- and middle-income households set to receive incrementally more money.

The $9.5 billion in tax refunds, which CalMatters reported Friday, is part of a $12 billion relief plan that is central to a broaderĀ $300 billion budget deal that state leaders announced Sunday night.

ā€œCaliforniaā€™s budget addresses the stateā€™s most pressing needs, and prioritizes getting dollars back into the pockets of millions of Californians who are grappling with global inflation and rising prices of everything from gas to groceries,ā€Ā Newsom,Ā Senate President Pro Tem Toni AtkinsĀ andĀ Assembly Speaker Anthony RendonĀ said in a joint statement.

Under the tax rebate plan, 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. So a single parent would receive $700 and two-parent families would receive $1,050.

The amount would decrease to $250 per taxpayer for households making as much as $125,000 for individuals or $250,000 for joint filers, and to $200 per taxpayer for households making as much as $250,000 for individuals or $500,000 for joint filers. In both of these tiers, parents would receive an additional $250 or $200, respectively, if they have at least one dependent.

Californians with incomes above $250,000 for an individual or $500,000 for joint filers would not receive a rebate. The relief package also includes $1.1 billion in aid for recipients of Supplemental Social Security or CalWORKs.

ā€œThe plan recognizes that some people are hurting more than others and gives them greater relief,ā€ according to an email sent earlier this week to Assembly Democrats.

Differences in proposed spending for universities, housing and social safety net programs, as well as the details of a major climate package, lingered as the LegislatureĀ passed a placeholder budget earlier this month. But the biggest holdup to a bargain, which must pass before lawmakers leave for summer recess at the end of the month, had been the dispute over direct financial assistance for taxpayers.

Newsom and legislative leaders were at odds for months over whether to target the relief at drivers or the neediest Californians.

During his State of the State speech in March, the governor called for a plan to address spiraling gas prices, which have since reached an average ofĀ more than $6 per gallon. He proposed toĀ send $400 debit cards to every registered vehicle ownerĀ in the state, up to two per person.

Legislative leaders firmly resisted that approach, which did not include an income limit. Progressive critics noted that it would benefit millionaires and billionaires while leaving out Californians too poor to own their own cars.

The agreement is much closer to theĀ program that Atkins and Rendon devised, under which the state would have cut $200 checks for each eligible taxpayer and their dependents living in households making less than $250,000 per year for a couple or $125,000 per year for an individual.

DespiteĀ growing demandsĀ from Republican lawmakers, plus an increasing number of Democrats, the plan does not include a broad suspension of the stateā€™s gas tax, which is set to increase by three cents on July 1. The relief plan does, however, include a suspension of a portion of the diesel sales tax, lowering prices by about 23 cents per gallon and costing $439 million.

About the Author

Alexei Koseff covers Gov. Gavin Newsom, the Legislature and California government from Sacramento. He joined CalMatters in January 2022 after previously reporting on the Capitol for The Sacramento Bee and the San Francisco Chronicle.

RELATED TOPICS:

DON'T MISS

Nations at UN Climate Talks Agree on $300B a Year for Poor Countries in a Compromise Deal

DON'T MISS

What to Know About Lori Chavez-DeRemer, Trump’s Pick for Labor Secretary

DON'T MISS

What to Know About Scott Turner, Trump’s Pick for Housing Secretary

DON'T MISS

Trump Taps Investor Scott Bessent as Treasury Secretary

DON'T MISS

NATO Head and Trump Meet in Florida for Talks on Global Security

DON'T MISS

Why Cranberry Sauce Is America’s Least Favorite Thanksgiving Dish – and 5 Creative Ways to Use It

DON'T MISS

ā€˜Get Somebody Else to Do Itā€™: Trump Resistance Encounters Fatigue

DON'T MISS

Anti-Vax Activists Dominate RFK Jr.’s HHS Transition Team

DON'T MISS

Wing ‘Wizard’ Harry Potter to Play for Australia’s Rugby Team. Let the Puns Begin.

DON'T MISS

Tulare County Man Arrested After Allegedly Threatening to Kill Middle School Girls, Staff

UP NEXT

What to Know About Lori Chavez-DeRemer, Trump’s Pick for Labor Secretary

UP NEXT

What to Know About Scott Turner, Trump’s Pick for Housing Secretary

UP NEXT

Trump Taps Investor Scott Bessent as Treasury Secretary

UP NEXT

NATO Head and Trump Meet in Florida for Talks on Global Security

UP NEXT

Why Cranberry Sauce Is America’s Least Favorite Thanksgiving Dish – and 5 Creative Ways to Use It

UP NEXT

ā€˜Get Somebody Else to Do Itā€™: Trump Resistance Encounters Fatigue

UP NEXT

Anti-Vax Activists Dominate RFK Jr.’s HHS Transition Team

UP NEXT

Wing ‘Wizard’ Harry Potter to Play for Australia’s Rugby Team. Let the Puns Begin.

UP NEXT

Tulare County Man Arrested After Allegedly Threatening to Kill Middle School Girls, Staff

UP NEXT

Two Fresno, Clovis Trustee Races Remain Tight. Bond Measures Passing with Growing Margins

Trump Taps Investor Scott Bessent as Treasury Secretary

18 hours ago

NATO Head and Trump Meet in Florida for Talks on Global Security

18 hours ago

Why Cranberry Sauce Is America’s Least Favorite Thanksgiving Dish – and 5 Creative Ways to Use It

22 hours ago

ā€˜Get Somebody Else to Do Itā€™: Trump Resistance Encounters Fatigue

22 hours ago

Anti-Vax Activists Dominate RFK Jr.’s HHS Transition Team

22 hours ago

Wing ‘Wizard’ Harry Potter to Play for Australia’s Rugby Team. Let the Puns Begin.

22 hours ago

Tulare County Man Arrested After Allegedly Threatening to Kill Middle School Girls, Staff

1 day ago

Two Fresno, Clovis Trustee Races Remain Tight. Bond Measures Passing with Growing Margins

1 day ago

Richardson Close to Cementing Northeast Fresno Council Race

1 day ago

Visalia Motorcyclist Killed in Collision on Walnut Avenue

1 day ago

Nations at UN Climate Talks Agree on $300B a Year for Poor Countries in a Compromise Deal

BAKU, Azerbaijan ā€” United Nations climate talks adopted a deal to inject at least $300 billion annually in humanity’s fight against cl...

10 hours ago

10 hours ago

Nations at UN Climate Talks Agree on $300B a Year for Poor Countries in a Compromise Deal

13 hours ago

What to Know About Lori Chavez-DeRemer, Trump’s Pick for Labor Secretary

18 hours ago

What to Know About Scott Turner, Trump’s Pick for Housing Secretary

18 hours ago

Trump Taps Investor Scott Bessent as Treasury Secretary

18 hours ago

NATO Head and Trump Meet in Florida for Talks on Global Security

22 hours ago

Why Cranberry Sauce Is America’s Least Favorite Thanksgiving Dish – and 5 Creative Ways to Use It

22 hours ago

ā€˜Get Somebody Else to Do Itā€™: Trump Resistance Encounters Fatigue

22 hours ago

Anti-Vax Activists Dominate RFK Jr.’s HHS Transition Team

Help continue the work that gets you the news that matters most.

Search

Send this to a friend