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House committee backs memorial urging Congress to extend tax relief for wildfire victims
Summary
The House Climate, Energy and Environment Committee heard testimony supporting House Joint Memorial 201, which asks Congress to permanently extend federal tax exemptions for disaster payments to wildfire victims; lawmakers and witnesses said the exemption helps ensure settlement awards go to recovery rather than taxes and fees.
Chair Lively opened a public hearing on House Joint Memorial 201, which urges Congress to permanently extend federal tax exemptions for disaster payments to wildfire victims.
Representative Jamie Kate (House District 11) testified in support, recounting the scale of liability tied to the Labor Day 2020 fires and the burden high federal tax rates and attorneys' fees can place on victims. "For the thousands of victims in the 2020 Labor Day fires who are part of the class action lawsuit against Pacific Power, the estimate for liability that will be owed is in the billions of dollars," Kate said, noting jury awards and settlements could leave victims in the 37% federal tax bracket and with large attorney fees.
Kate described the memorial as aligning Oregon with bipartisan federal efforts to make disaster awards tax-exempt, citing Senate Bill 1520 (Oregon) and federal action in 2024 that provided a two-year federal exemption. She argued a permanent federal solution would give wildfire victims clarity and help them rebuild local communities.
The committee asked no follow-up questions and closed the hearing on HJM 201.
