SACRAMENTO, Calif. – To help every dollar count for victims of wildfires, Senator Brian Dahle (R-Bieber) authored Senate Bill 542 to exclude settlement payments awarded to victims of the 2022 Mill Fire and the 2021 Dixie Fire from being subject to income taxes. Currently, when a person receives a settlement as compensation, from a utility or other private entity, federal and state laws consider that taxable income. This is an unjust burden on Californians trying to rebuild their homes and lives after disasters.
The Legislature passed SB 542 with no opposition, but the Governor vetoed the bill over the weekend, citing budget concerns.
“I’m disappointed the Governor chose to overlook wildfire victims by turning his back on them in a time of crisis,” said Senator Dahle. “Governor Newsom would rather prioritize billions in funding for illegal immigrants to receive free health care, than help my constituents rebuild and recover.”
Senator Dahle brought forward similar legislation last year excluding income taxes for individuals who received payment settlements in connection with the Zogg Fire. He’s been outspoken on the homeowners’ insurance crisis, and brought forward several bills to improve forest management.
Click here and here to learn more about Senator Dahle’s actions to promote healthy and sustainable communities.
“It’s just wrong to tax payments victims received for the harm caused by another’s negligence,” added Dahle.
Background
The Dixie Fire began on July 13, 2021, and burned across five counties consuming nearly one million acres. The inferno destroyed 1,311 residential, commercial and other building with nearly 2,000 personnel assigned to battle the blaze. The Mill Fire began on September 2, 2022, and burned nearly 4,000 acres and destroyed 118 structures, and damaged 26 more. Tragically, lives were lost due to both fires.
Financial settlements were reached for the fires beginning in 2022.
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