Senate committee advances memorial urging permanent federal tax exemption for wildfire settlements
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Summary
The Senate Committee on Natural Resources and Wildfire voted 5–0 to send House Joint Memorial 201 to the floor, urging Congress to permanently exempt disaster payments and liability awards for wildfire victims from federal income tax to help maximize recovery funds for affected Oregonians.
Chair Golden opened the committee’s public hearing on House Joint Memorial 201 and members heard testimony from the bill’s chief sponsor, Representative Jamie Kate (House District 11). Kate told the committee HJM 201 "ask[s] Congress to permanently renew federal tax exemptions for disaster payments that expired at the end of last year," and said the federal exemption is "critical for many areas around the country struggling to recover from disasters."
Kate described the stakes for victims of the 2020 Labor Day fires, noting class‑action liability estimates "in the billions of dollars" and that awards and settlements "averaging millions per victim" could push recipients into the 37% federal tax bracket while also being reduced by "30 to 40% in attorney's fees and other court costs." She said the current short‑term federal exemption that followed state work needs a permanent fix so victims can plan and use awards for recovery.
Senator Gerard, who disclosed he is a member of a related class‑action suit, urged approval and criticized Pacific Power’s settlement pace and corporate structure, saying "It really, really bothers me that this hasn't been settled."
Vice Chair Nash moved HJM 201 to the floor with a "do pass" recommendation. The committee conducted a roll call and the measure passed 5–0. Chair Golden asked Senator Gerard to carry the memorial to the Senate floor; Gerard agreed.
The committee’s action was procedural: HJM 201 is a memorial asking Congress to act and does not itself change state law. The committee record indicates two federal proposals were identified during questioning: a House bill to extend the exemption through 2030 and a Senate bill proposing a permanent extension. Committee staff closed the hearing and moved immediately into the scheduled informational session on farm store and farm stand regulations.
What happens next: HJM 201 will be placed on the Senate floor calendar for consideration and the sponsor designated by the committee will carry it forward.