Cutrona co-sponsors bill that means more derailment tax relief
COLUMBUS — A bill to offer more tax relief to those impacted by the 2023 East Palestine train derailment passed the Ohio Senate on Wednesday.
The legislation, co-sponsored by State Sen. Al Cutrona, R-Canfield, will ensure residents in East Palestine and surrounding communities in Ohio will not have to pay state taxes on federal relief payments they received to help recover from the disaster.
“Our neighbors in East Palestine have suffered enough, and I want to make sure they are not subject to any more red tape and bureaucratic obstacles to a full recovery,” said Cutrona via a news release. “I joined Vice President Vance in East Palestine last week to hear firsthand what those people need right now, and this legislation will go a long way towards making sure our government is not hurting, but actually helping, these people rebuild their lives and their village.”
According to the release from Cutrona’s office, Senate Bill 9 helps accomplish these goals by declaring an emergency and incorporating changes to federal tax law, taking effect since March 15, 2023, into Ohio income tax law. This will allow residents to file quickly before the tax deadlines, in an expedited way.
The bill now moves on to the Ohio House of Representatives. If it passes the House, it will move on to the Governor’s desk for signature.
Since the derailment, several pieces of legislation have been introduced at the state and federal levels to help aid in the village’s recovery or prevent a similar tragedy in the future. So far, just one has had enough traction to advance into a signature.
In December, the Federal Disaster Tax Relief Act was signed into law by President Joe Biden, making any derailment-related compensation — including pending settlement awards — federally tax exempt. It also made compensation non-taxable for residents impacted by victims of hurricanes and wildfires.
There have been other measures taken regarding the taxability of derailment assistance and tax relief for those impacted by the rail disaster.
In July 2023, Rep. Monica Robb Blasdel, R-Columbiana, secured a deduction for taxpayers impacted by the derailment from state income tax. Robb Blasdel pushed for these amendments to the state budget, which was approved by the General Assembly and signed into law.
Locally, East Palestine Village Council passed a resolution in April 2023 making any derailment assistance from Norfolk Southern exempt from income tax in the village.