California’s gas tax will increase on July 1 due to scheduled annual increases, costing drivers nearly three cents more at the pump.
The scheduled tax increase adds inflammatory prices brought by supply chain disruptions and Russia’s unprovoked war on Ukraine. With this scheduled increase, the gas tax hike will increase by 5.6 percent, taking the current tax up to 53.9 cents per gallon, a jump of 2.8 cents.
According to the AAA, Californians pay on average $6.29 per gallon, while the nationwide average is about $4.85 a gallon. These mandatory incremental increases are due to Senate Bill 1, known Road Repair and Accountability Act of 2017, a transportation funding package focused on improving the local and state roadway systems.
As of Thursday, the average price of regular self-serve gasoline in San Diego County is $6.253, following a 15-day streak of dropping prices. The average price has dropped 12 cents over the past 15 days, including two-tenths of a cent Wednesday, according to figures from the AAA and the Oil Price Information Service.
The streak of decreases follows a run of 19 increases in 20 days totaling 35.5 cents.
Gov. Gavin Newsom proposed an $11 billion relief package in March to alleviate some financial strain on Californians. Newsom’s proposal called for $9 billion in tax refunds to Californians in the form of $400 direct payments per vehicle, capped at two vehicles, along with $2 billion for broader relief.
Last week, Newsom and Democratic legislative leaders agreed on a $17 billion relief package that includes $9.5 billion in inflation relief funds. Dubbed the “middle-class tax rebate”, the package will provide 23 million California taxpayers between $200 and $1,050 by early next year.
According to the relief package, those who make up to $75,000 for individuals or $150,000 for joint filers would receive $350 per taxpayer. An additional $350 will be added for at least one dependent.
A single parent would therefore receive $700 and two-parent families would receive $1,050.
Those making up to $125,000 for individuals or $250,000 for joint filers will receive $250 per taxpayer and an additional $250 for at least one dependent. Taxpayers making as much as $250,000 for individuals or $500,000 for joint filers will receive $200, with an additional $200 if they have at least one dependent.
Those earning more than $250,000 will not receive a rebate.