Victor Valley Times

Sen. Scott Wilk (R-Santa Clarita) celebrated a significant milestone as his proposal to make wildfire settlement payments tax-free successfully moved out of the Senate Revenue and Taxation Committee. Speaking on the matter, Senator Wilk emphasized the importance of providing financial relief to wildfire victims without the burden of taxation. He stated, “The last thing people deserve after losing their home to wildfire is a tax on the money that’s meant to help restart their life.”

The proposed legislation, Senate Bill 1004 (SB 1004), aims to exempt settlement payments related to any California wildfire occurring from Jan 1, 2020 onwards from taxation, with a ten-year sunset provision. This bill follows in the footsteps of previous legislative actions that made settlements from specific wildfires tax-exempt.

Highlighting the necessity for a uniform approach, Senator Wilk underscored, “The legislature has said numerous times that certain wildfire settlements should be tax exempt. That should be the standard across the board, so victims have one less thing to worry about as they heal and move on.”

In reference to a specific wildfire incident, Wilk expressed concern for his constituents affected by the Bobcat Fire in 2020. He lamented the lack of tax exemption for settlements related to this fire and stressed the importance of ensuring equitable treatment for all wildfire victims, regardless of the specific wildfire they were impacted by. Wilk affirmed, “SB 1004 would ensure that they, and all victims of wildfire regardless of where they live, get the same treatment.”

The bill's advancement represents a step towards alleviating the financial burdens faced by individuals and communities grappling with the aftermath of devastating wildfires.