Newsom said he will call a special session in December to pass a new tax on oil company profits to punish them for what he called “rank price gouging.”
soared across the nation this summer because of high inflation, Russia’s invasion of Ukraine and ongoing disruptions in the global supply chain.
Several states chose to suspend their gas taxes this summer, including Maryland, New York and Georgia. Newsom and his fellow Democrats that control the state Legislature refused to do that, opting instead to send $9.5 billion in rebates to taxpayers — which began showing up in bank accounts this week.
That proposal would have required state regulators to determine the tax rate, making sure it recovered any oil companies’ profit margins that exceeded 30 cents per gallon. The money from the tax would then have been returned to taxpayers via rebates.Newsom did not comment on that proposal when it was introduced in March, and lawmakers quickly shelved it. It could, however, act as a blueprint for the new proposal being negotiated between Newsom and legislative leaders.
California Republicans — who do not control enough seats to influence policy decisions in the Legislature — have called the tax "foolhardy."Gas prices in California have set records in recent days. Some consumers are worried prices will continue to rise as OPEC announced a cut to oil production. But experts say California prices may stay where they're at.
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