Tuesday, March 15, 2022
Gas Tax
California drivers won’t see a gas tax holiday any time soon after GOP move fails
California Republicans failed on Monday to force a vote on suspending California’s gasoline tax, but vowed to press on in the weeks ahead. They say they’re trying to give drivers relief at the pump immediately to help them cope with soaring prices. Democrats, including Gov. Gavin Newsom, have also said they want to help California motorists. But they’re not open to suspending the state’s gas tax, which they increased with Senate Bill 1 in 2017. That tax hike — which is used to pay for roads and infrastructure — also survived a 2018 repeal effort.
But that doesn’t mean Republicans will stop using expensive gas to push for a tax holiday. Assemblyman Kevin Kiley, R-Rocklin, on Monday made a motion to suspend rules and allow a vote on a bill that would suspend the gas tax for six months. Kiley’s measure proposes using general fund dollars to backfill the lost tax revenue.
Kiley’s call for a rule suspension failed, with 18 Assembly members voting in favor of allowing a vote and 40 voting against it. Afterward, Kiley tweeted that those who voted against his motion “welcomed $6 per gallon with open arms.”
REPUBLICANS CONTINUE PUSH FOR GAS TAX HOLIDAY
Republicans have been touting Kiley’s bill as a form of relief for drivers dealing with high gas prices that have surged amid Russia’s invasion of Ukraine. California’s average gas price was $5.74 per gallon on Monday, while the national average was about $4.33 per gallon, according to AAA.
State motorists pay about 51 cents per gallon in gas excise tax — even without it, Californians would still be paying fuel costs that are well higher than the national average. After Kiley’s failed vote, the Senate Republican Caucus released a letter it sent to Newsom asking him to consider suspending the gas tax. They said it would “represent much needed relief for working families struggling through the pandemic and those transitioning back from remote work.” “It would dramatically reduce the cost of living by driving down retail prices, and help control inflationary impacts on the economy that are driven by, among other things, the cost of gasoline,” the caucus wrote. “All this is still possible without putting infrastructure projects at-risk if those funds are instead backfilled through the state budget.” Newsom early in the year proposed postponing a scheduled gas tax increase. During his State of the State address on March 8, he acknowledged the need to do more for drivers and suggested a rebate of some kind to help Californians cope with high gas prices.
GAS TAX HOLIDAY A POLITICAL UPHILL BATTLE
Republicans say the Legislature could pass their measure quickly to begin saving drivers money, while Newsom’s rebate plan is unlikely to take effect until after the May budget revisions. Assembly Republican Leader James Gallagher, R-Yuba City, drew comparisons between Kiley’s bill and Senate Bill 118, which lawmakers passed on Monday to override a California Supreme Court decision that would’ve required UC Berkeley to cap student enrollment. “We’re fast-tracking that bill, as we should, because that’s an urgent issue,” Gallagher said during a press conference prior to the Assembly session. “But this is an urgent issue also — to make sure that every Californian gets 50 cents a gallon off of their gas right now. It would be a huge help to so many who are dealing with these really devastating costs of inflation right now.” But Kiley and Gallagher are likely to have little success with their bill, as Democratic legislative leaders have already stated their opposition to cutting the gas tax and signaled they’d likely be more open to Newsom’s rebate. Following Newsom’s State of the State, Senate President Pro Tem Toni Atkins, D-San Diego, and Assembly Speaker Anthony Rendon, D-Lakewood, said they want to see help for drivers come from the general fund, not in the form of “a small cut to the gas tax that might not get passed on to consumers.”
And analysts suggest gas prices could fall in mid- to late 2022, as the United States’ oil supply and customers’ demand for gas balance out. Kiley, who is running to represent California’s 3rd District in Congress, continues to use high gas prices as an opportunity to share his views on state and national energy issues. “We are seeing soaring gas prices across the country because of national policy failures that have made America less energy independent,” he said at the press conference. “Nowhere have those failures been worse than in California. And, as a result, nowhere are people paying more for gas than in California.”
Source: Sacramento Bee
