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State senator's district director asks Weed residents to press governor to restore tax waiver for wildfire settlements
Summary
Bruce Ross, district director for State Sen. Brian Dahle, told the council about efforts to waive state taxes on wildfire settlement checks and said Senate Bill 542 (which would have waived state taxes for Dixie and Mill Fire settlements) was vetoed by the governor; he urged community engagement and letters to the governor.
Bruce Ross, district director for State Senator Brian Dahle, addressed the Weed City Council during public comment to brief the council on state-level work to protect wildfire victims from tax liability on settlement proceeds.
Ross said that when families receive settlement payments related to a fire'damaged home, those payments can be treated as taxable income under federal and state law. "If there's a settlement ... it is taxable income in that year," Ross told the council, warning that tax obligations can materially reduce the funds people receive to recover.
Ross summarized recent legislative history: lawmakers moved to waive state taxes for certain wildfire settlements following the Camp Fire and other large disasters; Senate Bill 542 would have waived state taxes for Dixie Fire and Mill Fire settlement payouts, but Ross said the governor vetoed that bill about 11 or 12 days earlier, citing budgetary concerns.
He asked the council and the community to consider outreach to the governor and other officials in support of legislative fixes or a midyear budget adjustment that could include retroactive waivers. Ross offered to provide contact information and to be available for further conversation with the city and affected constituents.
