Monday, the Chiquita Canyon Tax Relief Act (AB 27), authored by Assemblywoman Pilar Schiavo, D-Chatsworth, advanced out of the Assembly Committee on Revenue and Taxation.

The bill would make any compensation received by residents as a result of the Chiquita Canyon Landfill disaster exempt from state taxes and excluded from counting against those who qualify for state assistance such as CalFresh, according to Schiavo.

This legislation is crucial for these communities, as it will ensure that affected individuals receive the full benefit of the funds intended to address their hardships and relieve any state financial burdens.

“We should be doing everything we can to help families escape the dangerous conditions caused by the Chiquita Canyon Landfill disaster, not penalizing them for accepting relief,” said Assemblywoman Schiavo. “The Chiquita Canyon Tax Relief Act ensures that impacted residents can accept the help they need without facing the added burden of higher taxes or loss of safety-net benefits.”

For years, residents living near the landfill in Val Verde, Castaic, and some communities in Santa Clarita have endured toxic air, noxious gas emissions, and severe health consequences due to an underground fire – which has recently tripled in size and is expected to burn for decades – at the landfill site.

While the Chiquita Canyon Landfill unfortunately ended their assistance program earlier this year, the treatment of those aid dollars as taxable income initially created a set of barriers for those considering accepting the assistance for fear of losing essential benefits like CalFresh, Medi-Cal, or disability payments.

Other families accepted the assistance because expensive upgrades to their air filtration systems or running them 24/7 is their only hope to combat the gasses.

This bill aims to protect those who saw no option but to accept the funds and to make sure no family has to make the difficult decision between benefits and their livelihood for  any future financial support received in response to this disaster.

The Chiquita Canyon Tax Relief Act now heads to the Assembly Appropriations Committee, where it joins the Landfill Fire Protection Act (AB 28).

If passed out of the Assembly Appropriations Committee, it would then advance to a full vote on the Assembly floor.

Ed. Note: The above information was provided to KHTS by Assemblymember Schiavo’s Office. 

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