Sen. Scott Wilk (R-Santa Clarita) announced that his bill to make wildfire settlement payments tax-free has passed its first hurdle in the Assembly, clearing the Committee on Revenue and Taxation.
“In the last two weeks, my district and the entire state have witnessed an explosion of wildfires. Combined with dry conditions and record-breaking heat, the threats these wildfires pose to our communities are more concerning than ever,” said Senator Wilk. “While I hope that no family will need this bill, history has proven that we must have every tool available to help victims rebuild their lives in the wake of a worst-case scenario.”
Senate Bill 1004 (SB 1004) proposes making settlement payments related to any California wildfire from January 1, 2024, to January 1, 2029, tax-exempt. Similar measures have been enacted for various wildfire settlements in recent years.
In 2022, Senate Bill 1246 and Assembly Bill 1249 were signed into law, making settlements related to the Thomas Fire, the Woolsey Fire, the Butte Fire, the North Bay Fires, and the Camp Fire tax-exempt. Likewise, Senate Bill 370 and Senate Bill 542 passed unanimously in the Senate in 2023 for settlements related to the Kincade and Zogg Fires.
In September 2020, the Bobcat Fire burned over 115,000 acres and destroyed homes in Juniper Hills. The fire was determined to have been caused by a tree coming into contact with power lines. No settlements have been paid out yet for this fire; if SB 1004 is signed into law, they would be eligible for tax exemption.
“If you received a settlement because you lost your home through no fault of your own, you deserve every cent. This bill removes one more worry for all victims,” Wilk concluded.
SB 1004 now moves to the Assembly Appropriations Committee.
