On Friday, Governor Gavin Newsom said he would call a special legislative session to push for a windfall profit tax on oil companies. This is in response to high prices of gas in California.

As of Friday, the average cost of a gallon of regular gas in California was $6.35 while the national average sits at $3.90.

Senate President pro Tempore Toni G. Atkins (D-San Diego) and Assembly Speaker Anthony Rendon (D-Lakewood) issued the following statement following Governor Newsom calling for a special Legislative session in December to examine gas price gouging:

“The gas rebates that are beginning to roll out today to Californians were a huge step in helping ease the brunt of rising fuel costs, and we will continue to examine all other options to help consumers. As stated last week, a solution that takes excessive profits out of the hands of oil corporations and puts money back into the hands of consumers deserves strong consideration by the Legislature. We look forward to examining the Governor’s detailed proposal when we receive it.”

Newsom first proposed a windfall tax back on Sept. 30:

Crude oil prices are down. Oil industry profits are up. Yet… gas prices in CA have increased by record amounts. It doesn’t add up.

We’re calling for a windfall tax so these profits go back to Californians paying for this oil company extortion. pic.twitter.com/FTAfXmOpAU

— Office of the Governor of California (@CAgovernor) September 30, 2022

Meanwhile, Republicans continue to call for the suspension of the gas tax while oil companies have blamed the high costs on maintenance and upgrades at refineries while also citing California regulation and environmental laws.

Senator Brian Dahle, who is running for Governor, tweeted out a response:  After pushing fuel prices to the highest in the nation, what’s Newsom’s solution? Call a special session (after the election) to raise taxes. More taxes aren’t the solution. Californians need relief now—suspend the gas tax

Kevin Slagle, Vice President of the Western States Petroleum Association, explained how California’s environmental laws and regulations have led to higher gas prices.

“It was just over a month ago that the Governor and the legislature got together and imposed a series of mandates and regulations that will cost Californians a record $54 billion dollars. These are the types of actions that can drive consumer costs way up. A better use of the special session would be to take a hard look at decades of California energy policy and what they mean to consumers and our economy,” said Kevin Slagle.

He added.

“If this was anything other than a political stunt, the Governor wouldn’t wait two months and would call the special session now, before the election. This industry is ready right now to work on real solutions to energy costs and reliability if that is what the Governor is truly interested in.”

According to AAA:

Republican Leaders Urge Rejection of Special Session for New Taxes

Say California Policy Decisions are to Blame for High Gas Prices

SACRAMENTO- Today, Assembly Republican Leader James Gallagher (Yuba City) and Assembly Budget Vice Chair Vince Fong (R-Bakersfield) called on the Governor and Democrat leaders to take immediate action to lower gas prices in California. In a letter sent Friday, the Republican leaders urged the following immediate actions:

1. Suspend the state’s gas tax, which is adding 54 cents a gallon to the cost of fuel. 
   
2. Retract the proposed Special Legislative Session to increase taxes.
   
3. Conduct a full and immediate audit of gas tax expenditures.

“The tax increase Democrats are proposing is insulting,” said Assembly Republican Leader James Gallagher. “They need to face reality…it’s their policy decisions that are driving up the cost of fuel in California. With record high inflation and $7 a gallon gas prices, the last thing struggling families need right now is another tax. Policymakers should be solely focused on ways to lower gas prices. More taxes are not the answer.”

“Californians are hit hard by soaring gas prices,” said Assemblymember Vince Fong. “The only reason to call a special legislative session would be to suspend the gas tax, reduce the fees and regulations that make California gas so expensive, and allow permits to increase production to lower gas prices.”

Read a copy of the letter sent to Governor Newsom, Speaker of the Assembly Anthony Rendon, and Senate President Pro Tempore Toni Atkins here.

Assemblyman Kiley Denounces Newsom’s Special Session to Raise Taxes

SACRAMENTO, CA – Assemblyman Kevin Kiley (R-Rocklin) released the following statement in response to Governor Gavin Newsom’s decision to call a Special Session of the Legislature on December 5, 2022 to raise taxes on oil producers:

“The Governor had an opportunity to call a special session to suspend the gas tax and give California drivers immediate relief at the pump,” Kiley said. “Instead he chose to bring the Legislature back this December to raise taxes and increase costs on consumers who are already paying the highest gas prices in the nation. Parody and reality have become indistinguishable.”

California’s average gas price hit $6.39 per gallon today, $2.50 more than the national average. This is just 5 cents below the state’s record high of $6.44 set in June of this year and an increase of $1.11 in the past month.

In January, Kiley introduced AB 1638, an urgency measure that would have immediately suspended the gas tax and saved Californian’s over 50 cents per gallon at the pump. That bill was rejected in the Assembly on multiple occasions. Instead of providing relief, the Speaker of the Assembly created the Select Committee on Gasoline Supply and Pricing to study the issue. To date, the committee has held two hearings and has yet to produce anything actionable.

Middle Class Tax Refunds Start Hitting Bank Accounts

Published: Oct 06, 2022