Sacramento, CA – Senate Majority Leader Mike McGuire introduced legislation this week that would ensure survivors of the devastating 2019 Kincade Fire will be exempt from paying state income taxes on settlement awards from PG&E. The 2019 fire, which was sparked by a faulty PG&E transmission line, forced nearly 100,000 people to flee, and destroyed 174 homes. 

“The Kincade Fire was massive and horribly destructive. Hundreds of neighbors lost everything. PG&E victimized these survivors once, they shouldn’t have to suffer again,” said Senator McGuire. “The guts of this bill are simple, but incredibly important: The legislation would eliminate all state taxes on Kincade Fire PG&E settlement funds putting millions back into the pockets of deserving survivors.”

“The Kincade Fire was a tragedy that affected many thousands of people – not just during the fire, but quite frankly, forever,” said Assemblymember Jim Wood, a co-author of the bill. “Once victims finally receive their well-deserved financial settlements, we have to make sure the payments are not taxable so they can move forward with their lives.”

The investor-owned utility already reached a $125 million settlement with the state, and paid $31 million to Sonoma County and the cities of Santa Rosa, Windsor, Cloverdale, and Healdsburg for government damages incurred. But residents who lost their homes and livelihoods are still waiting.

PG&E has estimated liabilities as high as $800 million for personal damage claims which are wrapped up in a settlement case in front of the courts. SB 370 will ensure that once payments are finally awarded in connection with the 2019 Kincade Fire, wildfire victims will be exempt from paying state personal income and corporation taxes on their settlement claim. 

“Right now, existing law makes wildfire settlement payments subject to taxation here in California. This can’t stand and we’re going to fight to get survivors every penny possible so they can rebuild their homes and lives,” said McGuire.

The legislation is co-authored by Senator Dodd and Assemblymembers Wood and Connolly.

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