California Budget Update

In May, Governor Newsom released his revised budget proposal that included relief from soaring diesel prices and rebates back to vehicle owners. The governor’s revision of the budget proposed delaying the scheduled increase of 5.6% diesel sales tax rate for one year, which could save truckers thousands of dollars at the height of record diesel prices and compounding inflation.

 

The proposal also contained a one-time rebate back to all registered California vehicle owners of $400 per vehicle and up to $800 for owners of more than one vehicle. 

 

While the Legislature agreed on the need to provide relief at the pump, disagreement on how to best provide relief to Californians suffering from soaring fuel and conventional goods costs.

 

Instead, Assembly and Senate leadership introduced a measure in the form of Senate Bill 192 or the Better for Families Rebates and Grants Budget Trailer. 

SB 192 provides rebates to individuals and families based on income rather than vehicle ownership as proposed by the governor. Individuals may receive up to $200 one-time rebates or up to $530 depending on their income levels and families may receive up to $800 depending on their income too. But the budget trailer bill does not include any relief at the pump for diesel truck drivers. SB 192 leaves out the Governor’s proposal to delay the increase in the diesel sales tax rate that will inevitably occur on July 1.