Assemblymember Tri Ta (R-Westminster) today expressed disappointment following Governor Gavin Newsom’s veto of Assembly Bill 760, bipartisan legislation that would have provided state tax relief to residents and businesses receiving settlement payments related to the 2026 Garden Grove chemical evacuation incident.
AB 760 would have excluded qualifying settlement payments from state personal income and corporate taxes, allowing affected families and businesses to keep all of the compensation intended to help them recover from losses associated with the disaster. The measure received unanimous approval in the Legislature.
“Orange County residents deserve immediate relief after being forced from their homes and businesses because of this chemical disaster,” said Assemblyman Ta. “I am deeply disappointed that after declaring a disaster, Governor Newsom vetoed AB 760. These families did nothing to cause this disaster, and they should not face uncertainty over whether the state will tax the compensation they receive because of it.
“The Governor says this issue should be handled through the state budget process, but that process is often negotiated behind closed doors with little opportunity for public scrutiny. “I appreciate Senator Strickland’s leadership and partnership on this effort, and we will continue working to find a path forward to provide this relief,” concluded Ta.
In his veto message, Governor Newsom stated that he supported the intent of AB 760 but argued that tax exclusions with General Fund implications should be considered through the annual state budget process.
“It is astonishing that Governor Newsom vetoed AB 760, and in doing so, turned his back on families and businesses already forced to bear the consequences of a chemical disaster. I co-authored this bipartisan bill because those displaced should not be punished twice: first by the disaster, and then by the tax code. These families deserve better, and this veto will not stop us from fighting for them. I’ll continue working with Assemblymember Ta to see how we can find a way to provide relief for those affected by the disaster in May,” said Senator Tony Strickland (R-Huntington Beach), principal co-author of AB 760.
“Orange County residents impacted by the chemical evacuations earlier this year deserve relief and certainty, not another burden from Sacramento. I’m extremely disappointed that Governor Newsom vetoed AB 760. His decision leaves families who were forced from their homes facing uncertainty over whether disaster relief payments could now become a tax liability. These residents did nothing to cause this disaster.
The Governor had an opportunity to give them peace of mind and certainty but chose not to. Thank you to Assemblyman Tri Ta and Senator Tony Strickland for their leadership and for standing up for the Orange County families impacted by this disaster,” said Mayor David Shawver, Mayor of the City of Stanton.
California has previously provided tax exclusions for certain disaster-related settlement payments. AB 760 sought to provide similar relief to Orange County residents and businesses impacted by the chemical disaster.