2 bills to help wildfire survivors with tax issues pass Oregon Legislature
Zach Urness
Oregon’s state Legislature this week unanimously passed two bills aimed at financially helping survivors of wildfires.
Both bills make tweaks to Oregon’s tax code to help wildfire survivors. One allows survivors to keep more of their money from lawsuit awards while the other is aimed at making rebuilding a home more affordable.
“To have both pass unanimously speaks volumes at how much this tax relief was the right thing to do for victims,” Jami Cate, R-Lebanon, who sponsored one bill and supported both, said in a Facebook post. “There is lots that still needs done, and so many victims who still need to get back home, but every step in the right direction matters, and we'll keep fighting for the next steps!”
Both bills still need to be signed into law by Gov. Tina Kotek.
Tax exemption for wildfire awards passes
Senate Bill 1520, sponsored by Sen. Brian Boquist, I-Dallas, creates a tax exemption for awards stemming from lawsuits related to wildfires.
Multiple lawsuits have resulted in millions in settlements and awards to survivors over the past year, primarily from legal action against PacifiCorp, which a jury found at fault for igniting four of the 2020 Labor Day wildfires — Santiam/Beachie, Echo Mountain Complex, 242 and South Obenchain.
The problem? State and federal tax laws created a situation where survivors only received a small amount of the payout — as little as 20-30%, according to a lawyer who helped negotiate a $299 million settlement for survivors of the Archie Creek Fire in southern Oregon.
The legislation exempts any awards or judgments from state taxes, Boquist said. He added there is currently a bill in Congress to exempt awards from federal taxes as well.
“SB 1520 is the result of a yearlong bipartisan effort to give wildfire victims financial relief needed rebuild their homes and get their lives back on track,” Boquist said in a previous statement.
Bill to reduce property tax for those rebuilding homes passes
A bill to help wildfire survivors by providing property tax relief moved quickly and passed both chambers.
Senate Bill 1545, sponsored by Cate and Sen. Fred Girod, R-Stayton, grants a property tax break to destroyed homes rebuilt after the 2020 wildfires.
The bill authorizes counties to allow homeowners who rebuilt after the 2020 Labor Day wildfires to pay property taxes based on pre-fire assessed value.
Cate said previously the bill "allows counties to gradually increase tax bills based on the pre-fire valuations of properties before homes were lost, and avoid the devastating sticker shock victims have when they receive their adjusted tax bill after a rebuild."
Mia Mohr, who testified in favor of the bill, said her property taxes nearly doubled when she attempted to rebuild after the fires.
“This is a significant financial burden for homeowners who had always been able to anticipate and budget for property taxes and now suddenly find their homes unaffordable,” she said in testimony. “This is detrimental to the county's efforts to support rebuilding and restoring the local economy.”
Zach Urness has been an outdoors reporter in Oregon for 15 years and is host of the Explore Oregon Podcast. Urness is the author of “Best Hikes with Kids: Oregon” and “Hiking Southern Oregon.” He can be reached at zurness@StatesmanJournal.com or (503) 399-6801. Find him on Twitter at @ZachsORoutdoors.