Assemblyman Tri Ta (R-Westminster) introduced legislation Monday that would exempt compensation payments received by victims of the 2026 Garden Grove chemical leak from California state income taxes.

The bill, AB 760, would apply to residents, property owners, and businesses that receive qualifying payments connected to the incident. It covers both personal income taxes and corporate income taxes for taxable years beginning January 1, 2026 through January 1, 2031.

"When families are compensated for expenses caused by an evacuation, that money should stay with the people who were affected," Ta said. "The state should not be taking a share of those funds through income taxes."

State Senator Tony Strickland (R-Huntington Beach) is joining as principal co-author.

"I heard directly from residents and business owners about the financial strain they faced as they worked to recover," Strickland said. "This is about delivering real relief."

The chemical leak began May 21 at an aerospace manufacturing facility in Garden Grove. More than 50,000 residents were evacuated. Governor Newsom declared a state of emergency, and President Trump issued a presidential emergency declaration.

The bill drew support from local officials across the affected cities. Garden Grove Mayor Stephanie Klopfenstein said evacuees "should not face state income taxes on compensation intended to help them recover from an emergency that uprooted their lives."

Stanton Mayor Dave Shawver said the incident "created uncertainty for families and local businesses alike" and that Ta's bill "helps ensure that relief serves its intended purpose."

Westminster Councilwoman Amy Phan West, whose District 1 was among the hardest hit, said any compensation received by evacuees "is meant to help them recover — not create another tax burden."

"Government should not tax disaster assistance meant to help families rebuild," Phan West said.