Californians have a new opportunity to ease the burden of rising gas prices by claiming a Gasoline Tax Refund, allowing them to receive up to six cents per gallon for gasoline purchased between January 2020 and June 2024. With the state’s gas prices reaching an average of $5.43 per gallon as of July 2024, this refund provides a much-needed financial reprieve, especially for those who frequently fuel up.
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California Gas Stimulus Rising Gas Prices
Gas prices have been on the rise since the Covid-19 pandemic disrupted global economies and supply chains. As of July 2024, filling up a 16-gallon tank costs around $85.44 in California, placing a significant strain on household finances.
The Gasoline Tax Refund, offering up to six cents per gallon, could save Californians about five dollars each time they fill their tanks. While these savings might seem modest, they can add up, particularly for frequent drivers.
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California Gas Stimulus Program Details
The Gasoline Tax Refund is part of a broader effort to provide financial relief to Californians amid escalating fuel costs. As emphasized by Sen. Steven Bradford, Chairperson of the California Energy Commission, the objective is to ensure that the relief provided is both tangible and meaningful at the pump.
To claim this refund, you must complete a form demonstrating that the gasoline purchased in California was for specific purposes, such as off-highway, paratransit, export, or blended fuel (E-85) uses. Eligible off-highway purposes include activities like farming, construction, landscaping, and utility services.
California Gas Stimulus Checks Started Arriving on October 7
Refunds began to be disbursed on Friday, with recipients receiving either a debit card by mail or a direct deposit into their bank accounts. However, it may take a few days or weeks for the funds to arrive. According to the California Franchise Tax Board, approximately 90% of those eligible for direct deposits will receive their payments by the end of October.
Some individuals have reported on social media that they received their refunds via direct deposit on Friday, while others are still waiting.
How to Claim
Claiming the Gasoline Tax Refund is a straightforward process. The refund amount is calculated based on the price per gallon of gasoline during different periods from 2020 to 2024. Here’s a breakdown of the refund rate during five distinct periods:
| Period | Price Per Gallon | Refund Rate |
|---|---|---|
| 7/1/2020 to 6/30/2021 | $0.505 | Up to 6 cents |
| 7/1/2021 to 6/30/2022 | $0.511 | Up to 6 cents |
| 7/1/2022 to 6/30/2023 | $0.539 | Up to 6 cents |
| 7/1/2023 to 6/30/2024 | $0.579 | Up to 6 cents |
| 7/1/2024 to 6/30/2024 | $0.596 | Up to 6 cents |
Steps to Claim
- Gather Documentation: Make sure you have proof that you bought gasoline in California for use off-road, in paratransit, for export, or as mixed fuel. Receipts or other verification forms will be required.
- Complete the Form: Fill out the electronic Form SCGR-1. This form is necessary to process your refund claim.
- Submit the Form: Submit the completed Form SCGR-1 to the State Controller’s Office Tax Administration Section. Submissions can typically be made electronically or by mail, following the office’s instructions.
By following these steps, you can successfully claim your Gasoline Tax Refund and receive a partial refund on your fuel expenses.
How Much Will I Get?
The payments are determined based on income and family size.
- Single taxpayers earning less than $75,000 a year and couples filing jointly making under $150,000 annually will receive $350 per taxpayer.
- Taxpayers with dependents will get an additional $350, regardless of the number of dependents.
For example, a couple earning a combined $125,000 with two children would qualify for $350 per adult plus $350 for their children, totaling $1,050.
What About Higher-Income Californians?
Higher-income residents will receive smaller payments.
- Single taxpayers earning between $75,000 and $125,000 annually will receive $250, plus the same amount for their dependents, for a maximum of $500.
- Couples earning between $150,000 and $250,000 will receive $500, plus $250 for dependents, with a maximum of $750.
The rebate amounts decrease with higher incomes and phase out entirely for those earning over $500,000.
Conclusion
The Gasoline Tax Refund program offers a modest yet meaningful way to help Californians manage the high cost of gasoline. While the savings may not seem substantial, every cent can make a difference when dealing with rising fuel prices. By understanding the eligibility criteria and following the necessary steps to claim the refund, Californians can reduce their fuel costs and enjoy some financial relief.
FAQs
Who is eligible for the Gasoline Tax Refund?
Anyone who purchased gasoline in California for off-highway, paratransit, export, or blended fuel purposes.
How much can I get back per gallon?
Up to six cents per gallon, depending on the purchase period.
How do I claim the refund?
Fill out and submit Form SCGR-1 to the State Controller’s Office.
What documentation is needed to claim the refund?
Proof of gasoline purchases for eligible purposes in California.