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82nd OREGON LEGISLATIVE ASSEMBLY--2024 Regular Session
A-Engrossed
Senate Bill 1520
Ordered by the Senate February 23
Including Senate Amendments dated February 23
Sponsored by Senators BOQUIST, FINDLEY, JAMA, MEEK, SMITH DB (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure. The statement includes a measure digest written in compliance with applicable readability standards.
Digest: Exempts award from wildfire suit from income tax.(Flesch Readability Score: 71.8).
Creates Oregon tax subtraction for amounts received in [settlement] resolution of a civil action
arising from wildfire.Allows taxpayer to amend return to claim refund for earliest tax year
in which subtraction is allowed.
Applies to declarations and executive orders issued on or after January 1, 2020, and before
January 1, 2026, and to amounts received in tax years beginning on or after January 1, 2020[, and
before January 1, 2026].
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to an income tax subtraction for amounts received in wildfire litigation; and prescribing
an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 2 of this 2024 Act is added to and made a part of ORS chapter 316.
SECTION 2.(1) There shall be subtracted from federal taxable income any amount re-
ceived in judgment or settlement resulting from a civil action arising from wildfire, as de-
fined in ORS 477.089, and awarded to a plaintiff.
(2) A subtraction under this section is allowed only for resolution of civil actions arising
from wildfire that:
(a) Is the subject of a state of emergency declared by the Governor;
(b) Occurs in an area subject to an executive order of the Governor invoking the Emer-
gency Conflagration Act under ORS 476.510 to 476.610; or
(c) Is a federally declared disaster, as defined in section 165 of the Internal Revenue Code,
whether located within Oregon or elsewhere.
(3) A subtraction under this section:
(a) Is not allowed for any amount described in subsection (1) of this section that is taken
into account as a deduction on the taxpayer’s federal income tax return for the tax year; and
(b) Is allowed only to the extent that losses, expenses or other damages compensated by
the amount of the judgment or settlement are not compensated for by insurance or other-
wise.
SECTION 3. Section 2 of this 2024 Act applies to declarations and executive orders issued
on or after January 1, 2020, and before January 1, 2026, and, notwithstanding ORS 315.037,
to amounts received in all tax years beginning on or after January 1, 2020.
SECTION 4. (1) Any taxpayer who seeks a refund due to exemption of amounts from
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 177 A-Eng. SB 1520
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taxation as provided in section 2 of this 2024 Act, as applicable to tax years beginning in
calendar year 2020, shall file an amended return for the applicable tax year.
(2) Notwithstanding ORS 314.415 (2), a taxpayer may file a claim for a refund described
in subsection (1) of this section at any time prior to May 15, 2025.
(3) A refund described in this section does not bear interest under ORS 305.220.
SECTION 5. This 2024 Act takes effect on the 91st day after the date on which the 2024
regular session of the Eighty-second Legislative Assembly adjourns sine die.
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