To exclude from gross income certain relief payments to the victims of the Chiquita Canyon elevated temperature landfill event.
Legislative Progress
IntroducedMr. Whitesides introduced the following bill; which was referred to …
Summary
What This Bill Does
The Chiquita Canyon Tax Relief Act ensures that victims of an environmental disaster at the Chiquita Canyon Landfill in Los Angeles County don't have to pay federal income tax on the compensation they receive. The bill treats these payments the same way natural disaster relief payments are treated under current tax law - as non-taxable. This applies to payments received starting March 1, 2024, for damages and losses from an underground elevated temperature event at the landfill that began on May 1, 2022.
Who Benefits and How
Residents of Los Angeles County who were harmed by the Chiquita Canyon landfill disaster are the primary beneficiaries. They receive tax-free compensation for property damage, relocation costs, loss of property value, closing costs when selling their homes, and other expenses resulting from the environmental incident. This means they get to keep 100% of their settlement or relief payments without owing federal income tax, which could save them thousands of dollars depending on their tax bracket. Waste Connections, Inc. (the company operating the landfill) also benefits indirectly - when their compensation payments are tax-free, victims may be more willing to accept settlements, potentially reducing the company's legal costs and settlement amounts.
Who Bears the Burden and How
The federal government loses tax revenue it would otherwise collect on these compensation payments. While this bill doesn't involve direct government spending, it does reduce federal income by exempting potentially millions of dollars in payments from taxation. All U.S. taxpayers collectively bear this cost through reduced federal revenue. The amount is likely modest since this affects only a specific local disaster, but it does create a precedent for site-specific tax relief that could be replicated for future environmental incidents.
Key Provisions
- Defines "Chiquita Canyon elevated temperature landfill event payments" as any compensation for losses, damages, relocation, property value decline, and other harms from the disaster
- Covers payments from federal, state, or local government agencies, as well as from Waste Connections, Inc. and related entities
- Treats these payments as "qualified disaster relief payments" under Section 139(b) of the Internal Revenue Code, making them tax-exempt
- Applies to payments received on or after March 1, 2024
- Specifically targets the elevated temperature event at Chiquita Canyon Landfill that began May 1, 2022
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
This bill excludes from gross income certain relief payments made to victims of the Chiquita Canyon elevated temperature landfill event in Los Angeles County, California.
Policy Domains
Legislative Strategy
"Provide tax relief to victims of a specific environmental disaster by treating compensation payments as non-taxable qualified disaster relief"
Likely Beneficiaries
- Residents of Los Angeles County affected by the Chiquita Canyon landfill event
- Individuals who received relief payments from government agencies or Waste Connections, Inc.
- Waste Connections, Inc. (indirectly, as tax-free payments may reduce liability pressure)
Likely Burden Bearers
- Federal Treasury (foregone tax revenue from excluded payments)
- Taxpayers generally (who bear the cost of reduced tax collections)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "waste_connections"
- → Waste Connections, Inc. and its subsidiaries, insurers, or agents
- "federal_state_local_government"
- → Federal, State, or local government agencies providing relief payments
Key Definitions
Terms defined in this bill
Any amount received by or on behalf of an individual as compensation for loss, damages, expenses, relocation, suffering, loss in real property value, closing costs with respect to real property (including realtor commissions), or inconvenience (including access to real property) resulting from the Chiquita Canyon elevated temperature landfill event if such amount was provided by a Federal, State, or local government agency, Waste Connections, Inc., or any subsidiary, insurer, or agent of Waste Connections, Inc. or any related person.
The elevated temperature landfill event occurring beneath the Chiquita Canyon Landfill in Los Angeles County, California, beginning on May 1, 2022.
Payments excluded from gross income under section 139(b) of the Internal Revenue Code of 1986.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology