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Coronavirus

California Governor Proposes Tax Rebates of Up to $1,100

SACRAMENTO, Calif. — Millions of Californians would get tax rebates of up to $1,100 under a proposal unveiled by Democratic Gov. Gavin Newsom as part of a broader pandemic recovery plan made possible by an eye-popping $75 billion budget surplus.

Individuals and households making between $30,000 and $75,000 annually would get a $600 payment under Newsom’s plan announced Monday. All households making up to $75,000 with at least one child, including immigrants who file taxes, would get an extra $500 payment.

The payments are part of what Newsom is calling a $100 billion plan to drive the state’s economic recovery. It also comes as Newsom faces a recall election.

The massive budget surplus is largely due to taxes paid by rich Californians who generally did well during the pandemic, and marks a major turnaround after officials last year said they feared a deficit of more than $50 billion.

The payments will total an estimated $8.1 billion, said H.D. Palmer, a spokesman for the state Department of Finance. The proposal also includes $5.2 billion to pay back rent and $2 billion for overdue utility bills for people who fell behind during the pandemic.

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