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Today Sen. Scott Wilk (R-Santa Clarita) introduced legislation that would help victims of wildfire by exempting settlement payments they receive from state income tax.
“When you’ve lost everything, the last thing you need is a tax hit on the settlement money meant to help restart your life,” said Senator Wilk. “The legislature has already decided that certain wildfire settlements shouldn’t be taxed. So instead of cherry picking who gets a break, this bill makes it standard across the board.”
SB 1004 would make settlement payments made in connection with any California wildfire, from Jan 1, 2020 forward, tax exempt. Until now efforts to do this have only been case-by-case.
In 2022, SB 1246 (Stern) made settlements related to the Thomas Fire and Woolsey Fire tax exempt.
“I feel deeply for those who lost their homes, memories, and livelihoods to wildfire. My goal with this bill is to ensure that they have one less thing to worry about, so they can focus on rebuilding and move forward,” concluded Wilk.