Another Tax Gas Price Hike Makes It A Bigger Pain In The Pump

SOUTHERN CALIFORNIA, CA. (Pain In The Pass) >> California’s are bracing for another tax hike Friday July 1^st. The gas tax is scheduled to increase after legislative leaders rejected Gov. Gavin Newsom’s proposal to suspend the hike to help drivers cope with skyrocketing gas prices at the pump.

Here’s what you need to know.

How much is California’s gas tax going up? The State’s transportation website lists that starting Friday, the gas tax increases by 5.6%. That takes the current state tax up to 53.9 cents per gallon, which means you’ll be paying 2.8 cents more per gallon.

With that said, the new gas tax hike will go into effect on July 1^st. It was approved by the people that voted for Senate Bill 1, or SB 1, which was approved in 2017, provided for gasoline tax hikes of 12 cents per gallon in 2017. In 2021 they added 3.2 cents a gallon and now on July 1, 2022 they will add 2.8 cents per gallon. The new state gas taxes will amount to about 53.9 cents per gallon.

Breaking down on the tax of a gallon of gas:

The federal government charges a tax of 18.4 cents per gallon. California’s excise taxes on gasoline come to 53.9 cents per gallon. That includes the controversial Senate Bill 1 that became a law to improve infrastructure and develop transportation programs across the state. Plus, there’s a state sales tax. It can vary by area but the San Bernardino County analysis estimated the sales tax averages at 7.75 cents per gallon. Add all together, Californians pay 79.8 cents per gallon just in gas taxes.

Remember the Gas Rebate: (not finished or a time table on when you will receive the rebate check*)

They announced on Friday the 24th of June: Under the 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 plan would also include an increase to recipients of Supplemental Social Security who do not file taxes.

*But the biggest holdup on the rebate check, which must go into print by Monday in order to pass before lawmakers leave for summer recess at the end of the month, has been the dispute over direct financial assistance for taxpayers. The rebate check may change or a time table to receive it.

Beginning on July 1^st and continuing each year, the gas taxes will be adjusted based on the California consumer price index.

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