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California Gas Prices: New details on Newsoms rebate proposal released in so-called trailer bill

In his gas tax rebate proposal released last week, Newsom did not specify the rebate amount or the value ceiling for eligible vehicles.

CALIFORNIA, USA — New details are emerging on Gov. Gavin Newsom's gas tax rebate proposal to help Californians with the rising costs at the pump.

On March 8, 2022, during his annual State of the State address, Newsom proposed his gas tax rebate plan saying he would work with legislative leaders “to put money back in the pockets of Californians to address rising gas prices.” 

According to the Governor's office, the refunds proposed after the State of the State address would include $400 for each registered vehicle that an individual owns — up to two vehicles. That means Californians who own cars could get up to $800 from the state to help offset record-high gas prices.

However, the trailer bill proposal released last week did not specify the rebate amount or the value ceiling for eligible vehicles.

“The reason that that amount is left blank in the draft legislation that we posted is that we recognize that that's one of the issues that the legislature wants to have further discussions on," CA Department of Finance Spokesperson H.D Palmer said. "The governor's proposal hasn't changed.”

Trailer bills implement how California's state budget is spent.

Additionally, in Newsom's proposal, the total amount his gas tax rebate plan would cost the state's surplus is left blank. Originally, state lawmakers estimated it would cost the state's surplus $9 billion to send out these checks.

In his trailer bill proposal, Newsom states that if Californians did not register their car by April 6, 2022, or have fees, penalties, or other requirements owed to the DMV, they will not qualify for the gas tax rebate.

Newsom proposed utilizing a third-party vendor with a no-bid contract to distribute these payments.

Read the entire gas tax rebate proposal Newsom released on Monday HERE.

Watch more from ABC10: Newsom pitches gas tax relief in his State of the State address | Rynor Report

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