Carl DeMaio Announces “Gas Tax Repeal and Rebate” Campaign to Stop $2 Gas Tax

Reform California has released its annual calculation for the total Gas Tax we’re paying for each gallon we pump, taking into account the state’s costly regulations. As broken down below, the current tax is $1.43 per gallon – but new mandates will spike it to two dollars.

That’s because the CA Air Resources Board (appointed by state politicians) is imposing a costly new fuel standard that will spike the cost by an additional 52 cents by 2026 – and there will also be a new yet-to-be-determined oil/gas penalty tax from the CA Energy Commission.

The skyrocketing Gas Tax rates prompted Reform California Chairman and candidate for State Assembly, Carl DeMaio, to announce a “Gas Tax Repeal and Rebate” campaign.

“California is already suffering from the highest gas tax and gas prices in the country, but now the gas tax is set to increase and hit $2 per gallon,” said DeMaio.

“That’s why one of the first bills I will introduce in the Assembly – and the Reform California Caucus will prioritize – is a bill to immediately cap California’s gas tax so it never exceeds the national average and immediately provide every driver with a $1000 rebate because California politicians have engaged in predatory price-gouging with their costly gas taxes,” explained DeMaio.

The current national average for Gas Taxes is roughly 40% of the cost of California’s taxes, at about 52-65¢ per gallon.

You can see the full breakdown of California’s total Gas Tax obligation per gallon below.

REFORM CALIFORNIA’S FULL “GAS TAX BREAKDOWN” CALCULATION:

• STATE EXCISE TAX: 59.6 cents (automatically increases July 1 each year)
• CAP AND TRADE TAX: 28 cents
• SALES TAX: 12 cents
• CARB REGULATION COSTS: 23 cents (today), increases to 75 cents (2026)
• UNDERGROUND STORAGE REGULATION COSTS: 2 cents
• FEDERAL EXCISE COSTS: 18.4 cents
• OIL/GAS PENALTY TAX: TBD

 TOTAL PER GALLON CA GAS TAX: $1.43 today, $1.95 by 2026

DeMaio’s “Gas Tax Repeal and Rebate” proposal would immediately invalidate several of these taxes and lower gas prices by a dollar or more per gallon. And the $1,000 rebates would help ease and undo the burden of prior price-gouging at the pump.

While DeMaio acknowledges the rebate program could cost the state upwards of $27 billion, DeMaio is a fiscal Hawk and says the rebates could easily pay for themselves by cutting the state’s bloated budget and diverting funding from California Democrats’ ‘woke’ programs like taxpayer-funded healthcare, lawyers, and other services for illegal immigrants.

“I say our state budget should go toward helping Californians, not aiding and enticing foreign nationals and illegal immigrants — let’s take care of Californians first,” said DeMaio.

DeMaio says that passing a “Gas Tax Repeal and Rebate” bill would be an uphill battle in the Legislature, so he plans to force a floor vote on this proposal.

“If Democrats refuse to support a ‘Gas Tax Repeal and Rebate’ bill, we will put this proposal on the ballot through a citizens’ initiative and we will weaponize gas prices against them in the election in 2026!” said DeMaio.

“The CARB tax is scheduled to spike the gas tax to $2 a gallon in 2026 – so our timing will be impeccable,” he continued.

But to force a floor vote in the Assembly, DeMaio must first win his election in November. You can join and contribute to the campaign below.