Legislation to Exempt Victim Compensation Payments from State Taxes Signed by the Governor

SACRAMENTO, CA – Today Assembly Bill (AB) 2979 by Assemblymember Mike Fong (D-Alhambra) was signed into law by Governor Gavin Newsom.

AB 2979 ensures that payments received from the California Victim Compensation Board (CalVCB) are exempt from state taxes.

CalVCB administers the state’s victim compensation program, providing reimbursement for crime-related expenses to victims who suffered physical injury or the threat of physical injury due to a violent crime.

After the 2023 mass shooting that took the lives of 11 Monterey Park community members and injured nine others, Assemblymember Mike Fong introduced AB 2979 to clarify for survivors of violent crimes who receive CalVCB payments that these payments are not considered gross income for the purposes of state taxes.

“As my office was helping survivors apply for CalVCB payments, which can help pay for funeral costs, income loss, and other recovery services, many constituents reported confusion on whether these payments are subject to state taxes,” said Assemblymember Mike Fong. “I am grateful to the Legislature and Governor Newsom for standing with survivors to provide clarity for not just Monterey Park, but Half Moon Bay, Trabuco Canyon, and all Californians who are continuing to heal after experiencing violence.”

AB 2979 received bi-partisan support in both the Assembly and Senate, and received no “no” votes.

AB 2979 will go into effect immediately.

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Assemblymember Mike Fong represents the 49th Assembly District, which includes the cities of Alhambra, Arcadia, El Monte, Monterey Park, Rosemead, San Gabriel, San Marino, South Pasadena and Temple City, and the unincorporated areas of Pasadena and San Gabriel.  He serves as the Chair of the Assembly Higher Education Committee and the Assembly Vice Chair of the Asian American Pacific Islander Legislative Caucus.