As decade's high inflation and soaring gas prices begin to impact consumers' buying power, California is looking to provide some relief to the middle class in the form of an "inflation relief" tax rebate.
Earlier this week, Governor Gavin Newsom announced a $17 billion relief package that offers $9.5 billion in tax refunds to qualifying Californians in the coming months. Part of the state's 2022-2023 budget, the package would also suspend state sales tax on diesel and provide additional aid to residents who need help paying rent and utility bills.
"California's budget addresses the state's most pressing needs, and prioritizes getting dollars back into the pockets of millions of Californians who are grappling with global inflation nad rising prices of everything from gas to groceries," Newsom said in a joint statement with Senate President Pro Tempore Toni Atkins and Assembly Speaker Anthony Rendon on Sunday.
California has the highest average price for a gallon of gas in the United States--averaging about $6.30 per gallon, according to AAA. The firm calculates the current national average to be at $4.84, with 10 states and Washington D.C. having an average gas price above $5.
Similarly to how federal COVID relief checks were issued during the pandemic, the amount a household receives will depend on the taxpayers' annual income.
Those with up to $75,000 in income, or $150,000 if married and filing jointly, will receive up to $350 per tax filer, with an additional $350 if they have one or more dependent. In other words, joint filers with at least one dependent will receive the highest possible sum of $1,050.
Above this first tier, Californians who make over $75,000 but below $125,000 in individual income or $250,000 if filing jointly, may receive $250 per taxpayer, plus $250 if they have dependents.
In the third tier, those who make above the second tier but less than $250,00 in single filer income, or $500,000 if filing jointly, can reviec $200 per filer, pus an additional $200 for dependents.
About 23 million Californians fall between these three income tiers. Any resident who makes above the third tier will not quality for the inflation relief rebate.