Barring unforeseen circumstances, money for another round of stimulus checks to California taxpayers will likely be included when Governor Gavin Newsom updates his proposed budget for the coming fiscal year in a few months.
Tax refunds were not part of the initial $286.4 billion proposal unveiled by the governor earlier this week, although he left open the possibility that such payments would be added in the May review. .
On Wednesday, he elaborated further, indicating the likelihood of that happening.
“We expect that in the revised wording in May, when I update the budget, we will probably have an additional refund for taxpayers,” he said, adding “no new taxes in our budget “.
He did not provide further details, including who would qualify. California had two rounds of payments last year under its Golden State Stimulus program.
The first round – known as Golden State Stimulus I – went to filers who received the California earned income tax credit or had an individual tax identification number and had a total adjusted gross income $75,000 or less.
Newsom then introduced Golden State Stimulus II, which expanded eligibility to residents with a Social Security number who reported earning $75,000 or less on their 2020 tax return.
In total, the GSS program has brought in a total of $12 billion to millions of California taxpayers, making it the largest state tax refund in U.S. history, officials said. The final stimulus checks were due to be mailed out on January 11.
The direct payments were possible because California last year had a budget surplus above its constitutional limit set by what is known as the “Gann limit.”
When this happens – and it has happened only twice since the cap was established more than 40 years ago – the state must give money back to taxpayers in some form or another.
California is planning the same scenario for fiscal year 2022 which begins July 1, hence why another round of stimulus checks are on the table again.
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