California gas tax hike still scheduled for July 1, highest in U.S.

California lawmakers may not be able to halt the annual state gas tax increase before the May 1 deadline, Gov. Newsom’s office said. 

Governor Gavin Newsome had previously said that he would help ease driving costs for Californians and delay the 5.6% tax increase scheduled for July 1. However, lawmakers might not be able to stop the tax hike because they have not yet introduced a bill for it before Sunday’s deadline. 

"It is clear now that the legislature will not act in time to provide that immediate, limited relief, but we look forward to working with lawmakers on the governor’s proposal for direct payments to Californians wrestling with rising prices," Newsom’s spokesperson Alex Stack said in a statement.

The $3.8 billion generated by the gas tax in the 2021-22 fiscal year is planned to be used to help fund the state’s infrastructure projects. 

On Wednesday, gas prices hit $4.13, compared to $2.88 a year ago, according to AAA. California has seen the highest price increases in the whole country, with a gallon of gas costing an average $5.68. In some counties, such as Mono County, the price has reaches $6.61 a gallon. 

Newsom’s office has talked about the idea of a rebate for residents with cars registered in California to help ease the soaring costs. The measure would be part of an $11 billion package that would give $400 refunds to personal car owners. 

“Helping offset the impact of inflation on California residents remains a top priority for the governor, and his revised budget will include proposals to help Californians keep pace with rising costs,” Newsom’s press office said in a statement. “The sooner we can move this package through the legislative process, the sooner we can deliver needed relief to Californians.”

In January, California Republicans introduced a bill to suspend the gas tax to help resident’s deal with rapidly rising gas prices and use the state’s $45 billion surplus to backfill projects. However, the bill did not secure enough votes in March and did not pass.