Redding Today

Senator Brian Dahle (R-Bieber) proposed Senate Bill 542 to exempt settlement payments awarded to victims of the 2022 Mill Fire and the 2021 Dixie Fire from income taxes. Currently, federal and state laws consider such settlements as taxable income, which Dahle argues is an unfair burden on Californians trying to rebuild after disasters.

The Legislature passed SB 542 without opposition, but Governor Gavin Newsom vetoed the bill over the weekend, citing budget concerns.

“I’m disappointed the Governor chose to overlook wildfire victims by turning his back on them in a time of crisis,” said Senator Dahle. “Governor Newsom would rather prioritize billions in funding for illegal immigrants to receive free health care than help my constituents rebuild and recover.”

Dahle had previously introduced similar legislation last year to exclude income taxes for individuals who received settlement payments related to the Zogg Fire. He has been vocal about the homeowners’ insurance crisis and has proposed several bills aimed at improving forest management.

“It’s just wrong to tax payments victims received for the harm caused by another’s negligence,” added Dahle.

The Dixie Fire began on July 13, 2021, burning across five counties and consuming nearly one million acres. It destroyed 1,311 residential, commercial, and other buildings with nearly 2,000 personnel assigned to battle the blaze. The Mill Fire started on September 2, 2022, burning nearly 4,000 acres and destroying 118 structures while damaging another 26. Both fires resulted in loss of life.

Financial settlements were reached for these fires beginning in 2022.

California's 1st Senate District includes all or portions of Alpine, El Dorado, Lassen, Modoc, Nevada, Placer, Plumas, Sacramento, Sierra, Siskiyou, Shasta counties as well as parts of Tehama, Butte, Colusa and Glenn counties.