With the April 15 deadline approaching for federal and state tax filing, Dixie Fire victims like Sue Weber, former chair of the Dixie Fire Collaborative, are closely watching the disaster tax relief assistance bills working their way through congress and the California state Legislature.
Weber, who lost everything in the Dixie Fire, had accompanied U.S. 3rd District Rep. Kevin Kiley on his tour of fire-ravaged Greenville last September. She stressed the need for this tax relief as fire settlements are arriving and people are looking to rebuild. “People are desperate for these bills to pass,” Weber told The Plumas Sun.
Kiley’s Washington, D.C., office updated The Plumas Sun on the status of HR 4970, which excludes from gross income, for income tax purposes, amounts received as wildfire relief payments.
The bill passed out of the House and was sent to the Senate in a giant package called HR 7024, Kiley’s staff said. It was placed on the Senate calendar March 22. Kiley’s staff suggested Plumas County constituents reach out to California Sens. Alejandro “Alex” Padilla and Laphonza Butler to encourage them to pass HR 7024.
The Plumas Sun contacted California State Sen. Brian Dahle’s office to get an update on the state’s tax relief bills. Dahle’s office reported that two bills — SB 927 and SB 1004 — have both passed out of the Senate Revenue and Taxation Committee, and are now awaiting action in the Senate Appropriations Committee. SB 927 would provide an income exclusion for amounts received to replace property damaged or destroyed by a natural disaster during a state of emergency. SB 1004 would provide an exclusion from gross income for amounts received for costs and losses associated with wildfires.
In a March 13 press release, Dahle had this to say about SB 927: “I’m proud of this legislation, and I’m thankful to the chair and committee for moving this forward. … It’s not okay that we tax Californians on these payments when they’re doing everything they can to rebuild and recover. My district has suffered from some of the most devastating wildfires in California’s history, and they, along with all Californians, deserve to be adequately compensated for their losses.”
The recent press release from Dahle regarding SB 927 is available here.
Meanwhile, SB 542 is a “gut-and-amend” version of the Zogg Fire tax-relief bill, which became part of the budget. The bill provides an exclusion from gross income for any qualified taxpayer for amounts received for costs and losses associated with the 2020 Zogg Fire in Shasta County. It is in Assembly Appropriations. More information about SB 542 is available from Dahle’s office here.
Weber said she was happy that HR 7024 had progressed to the next step, the Senate calendar. Yet knowing how slowly the government works, she said she would be filing for an October 2024 tax extension.
