The proposal would make it illegal for oil companies to charge excessive refining margins-- the price difference between the cost of crude oil pre-refinement and the cost of the product once it leaves the refinery.
Gov. Gavin Newsom said the special legislative session will consider a windfall profits tax on oil companies, in the form of an excise tax, with revenue returned to taxpayers as rebates to offset high gas prices.
The governor asked state lawmakers to introduce a windfall tax that would cap oil companies’ profits, tax at a higher rate any earnings above that ceiling and return the money to taxpayers via rebates.
If enacted this summer, California’s mandate — the first in the world — would increase sales of electric or other zero-emission cars to 35% in 2026, and prohibit new gasoline or diesel cars by 2035.
One option for California lawmakers is to decrease the state tax on gas suppliers. Another is some form of rebate to help defray the higher cost of gas.