California car owners could get up to $800 for gas

SACRAMENTO, Calif. (AP) — Californians shouldering the nation's highest gas prices could soon get a tax break, free rides on public transit and up to $800 on debit cards to help pay for fuel under a proposal revealed Wednesday by Democratic Gov. Gavin Newsom

Gas prices have soared in recent weeks, the result of pandemic-induced inflation and Russia's invasion of Ukraine. State governments across the country have been debating what to do about it, with the most popular choices being slashing fuel taxes or offering rebates to taxpayers. Last week, the governors of Maryland and Georgia signed laws temporarily suspending their state's gas taxes, while Georgia on Wednesday also offered $1.1 billion in refunds to taxpayers in a separate action.

California's average gas prices hit a new state record Wednesday at $5.88 per gallon, more than $2 higher than it was a year ago, according to AAA. California has the second-highest gas tax in the country at 51 cents per gallon. But the state's Democratic leaders have been wary of suspending the gas tax because they fear oil companies would not pass along the savings to drivers.

Instead, they want to send money directly to taxpayers.

The governor's office says the average California driver spends about $300 per year on gas taxes. Newsom's idea is to give car owners $400 debit cards for up to two vehicles, for a total of $800. The money would go to everyone who has a car registered with the state — including the uber-rich, people living in the country illegally, and even drivers who own vehicles that don't use gasoline.

For people who don't have cars, Newsom wants the state to pay for their bus or train fare for three months. His proposal would give $750 million to transit and rail agencies, which Newsom said would be enough to give free rides to 3 million people per day. About...