Congressmen Introduce Bill to Protect Wildfire Settlement Money from Taxes

FILE - In this Oct. 9, 2017, file photo, a firefighter walks near a flaming house in Santa Rosa, Calif. Investigators say the deadly 2017 wildfire that killed 22 people in California's wine country was caused by a private electrical system, not embattled Pacific Gas & Electric Co. The state's firefighting agency said Thursday, Jan. 24, 2019, that the Tubbs Fire started next to a residence. They did not find any violations of state law. (AP Photo/Jeff Chiu, File)

California Congressmen Mike Thompson and Doug LaMalfa are introducing a bipartisan bill that will make sure fire survivors are not taxed on payments they get from PG&E’s Fire Victims Trust. Following fires in 2015, 2017, and 2018 PG&E issued a court-ordered trust of more than $13-billion for fire survivors. Congressman Thompson says the trust was set up to help people recover from the destructive fires and they should not have to pay taxes on these payouts. The bill would also exempt attorneys’ fees from taxation to ensure that those who get PG&E funds do not pay taxes on lawyers they did not hire.