This petition is crucial because it supports removing the unfair tax burdens on disaster settlements. Survivors need to fully utilize their funds to rebuild their lives and homes. 

Why This Petition Matters

The survivors of the Dixie Fire have endured unimaginable loss—homes, livelihoods, and communities destroyed in an instant. Yet, adding insult to injury, they are now being forced to pay steep taxes on their settlement funds—funds meant to help them rebuild and recover. These survivors should not have to sacrifice nearly half of their settlements to the state and federal government.

We are petitioning California Governor Gavin Newsom and Senator Brian Dahle to exempt these settlement funds from state income taxes, just as previous disaster victims have been granted tax relief. Governor Newsom’s recent veto of SB 542, which would have exempted these settlements from state taxes, is unacceptable. This veto is a failure to recognize the overwhelming challenges survivors continue to face. At the same time, Senator Brian Dahle allowed this bill to languish for a full year before it was pushed forward, leading to this outcome.

Why Is This Important?

Dixie Fire survivors, along with others affected by California’s catastrophic wildfires, are already struggling under the weight of financial burdens. Federal taxes can take up to 37% of their settlements, while state taxes can claim an additional 9.3% to 12.3%. After legal fees and taxes, these survivors may end up with less than half of their settlements. This is unacceptable. These funds are meant to help families rebuild their homes, their lives, and their communities—not to fill state and federal coffers.

Our Legislative Call to Action

At the federal level, H.R. 5863, a bipartisan bill that would exempt disaster survivors from federal taxes on their settlement money and attorney fees, is moving through Congress. We need the Senate to pass this bill and bring relief to survivors nationwide.

At the state level, we are calling on Governor Newsom and Senator Dahle to act immediately to rectify this injustice. Governor Newsom, these funds do not belong to the state. The survivors of the Dixie Fire and other wildfire disasters deserve the same relief that has been given to past victims.

How You Can Help

By signing this petition, you stand with the survivors of the Dixie Fire and other wildfire victims, demanding that their settlement funds be used for what they were intended for: rebuilding their lives. Together, we can push for immediate and comprehensive tax relief at both the state and federal levels.

Support this crucial legislation by signing our petition today and help bring essential relief to those who have suffered enough.

For more detailed stories of Dixie Fire survivors and the impact of these legislative actions, please visit the Dixie Fire Stories Project at www.dixiefirestoriesproject.com

Photo Credit: Joanne Burgueno, Poetic Camera Photography [poeticcameraphotography.pixieset.com]