Millions of Americans suffer from high gas prices, mainly in states like California.
Photo: Justin Sullivan/Getty Images
Gasoline prices in the United States continue to rise, driven by sanctions on Russia and also by inflation, which this year has reached record highs. This economic scenario has forced the rulers to implement new initiatives that reduce the impact of these changes on the finances of its inhabitants. For that reason, in recent weeks, several state governments have entertained the idea of waiving the gasoline use tax temporarily, including the government of California, known as the state with the highest tax in the entire country on this item ($0.51 per gallon).
According to CNN in Spanish, although the proposal seemed to be successful, it had some rejection among legislators and could not be approved. Therefore, until now no one enjoys or will enjoy this benefit.. However, in the midst of the talks, there was a sudden twist: the rejected proposal was replaced by a new proposal that involves a refund of $400 in tax relief for taxpayers who have to pay for the use of this fuel.
Who will benefit from this measure?
If approved, This initiative is expected to benefit all individual taxpayers residing in California who pay gasoline use taxes each year.. The main intention is that they receive a refund that, in the vast majority of cases, will cover the cost of the tax they paid.
According to the proposal, This measure would apply to the specific use of gasoline, which is registering increasingly higher prices.. It is not specified if it also includes diesel or other fuels that are also used to propel vehicles in the state and that are also subject to taxes according to the law: liquefied petroleum gas, propane, butane, liquid or compressed gas (LNG and CNG) , kerosene, alcohol fuels such as ethanol or methanol, and blended fuels with less than 15% gasoline (E85).
What exemptions exist in the state?
According to the California Department of Tax and Fee Administration (CDTFA), there is an exemption for the use of diesel in the statebut this exemption is specifically aimed at bus operators and people who make agricultural use of this fuel, which are recognized by the state as end users who must enjoy this benefit.
In these specific cases, the payment of taxes related to the use of fuel falls on the seller or operator of the service station, who must also pay taxes on the purchase. It may also accrue to users who purchase it for resale to end users.
You may also like:
– Fill up the gas tank and pay later: alternatives for drivers to deal with high prices
– Corn ethanol, the alternative to combat the high prices of oil-based gasoline in the US.
– States where drivers get the biggest gas price cuts
Leave a Reply