Gas Leak Victims Won't Be Taxed for Reimbursement Funds

Porter Ranch, CA -- Porter Ranch residents affected by the months-long gas leak from the Aliso Canyon natural gas storage facility will not be taxed for reimbursement funds they received from Southern California Gas Co., the Internal Revenue Service announced today.

According to Rep. Brad Sherman, D-Sherman Oaks, some residents who received reimbursements for housing and other expenses were warned by tax advisers that the funds might be considered taxable. But the IRS issued a notice today declaring the money is not taxable income.

"My neighbors in Porter Ranch have been through enough," Sherman said. "They shouldn't have to worry that the IRS would seek to tax them on the reimbursements they received from SoCalGas. Those who evacuated didn't get a windfall -- they left their homes to live in smaller quarters. Those who got air filters got no windfall -- they got to continue breathing air."

The Aliso Canyon gas leak was detected in late October and was not capped until February. Two schools in the area were forced to relocate, and thousands of residents moved into temporary housing out of the area.

City News Service