CA SB542

Excludes settlement payments from gross income for qualified taxpayers affected by the 2021 Dixie Fire (Butte, Plumas, Lassen, Shasta, Tehama counties) or 2022 Mill Fire (Siskiyou county) for taxable years 2022-2026.

Defines qualified taxpayers as individuals and businesses that owned real property, resided, or operated a place of business in affected counties and incurred fire-related expenses.

Identifies settlement entities as Pacific Gas and Electric Company (Dixie Fire) and Roseburg Forest Products (Mill Fire) making settlement payments to qualified taxpayers.

Requires the Franchise Tax Board to report by December 1, 2027 on the number of qualifying taxpayers and aggregate settlement amounts paid under this exclusion.

Declared an urgency statute taking immediate effect to provide rapid relief to fire victims.