‘Long overdue:’ EP residents exempt from taxes on payments from Norfolk Southern
After the train derailment in February of 2023, residents in East Palestine recovered from health concerns. There was a “black cloud” of speculation about traveling into the area, hurting business, recreation and community.
East Palestine residents and those in nearby communities received payments and reimbursements from Norfolk Southern for the clean-up and help paying healthcare bills.
U.S. Sen. Sherrod Brown (D-OH) announced all affected residents will be exempt from taxes on most payments and reimbursements received from Norfolk Southern in the aftermath of the February 3, 2023, Norfolk Southern train derailment in East Palestine.
“We took on the IRS and now East Palestine residents will not have to pay tax on assistance they received from Norfolk Southern,” said Brown. “This is a long overdue step – the people of East Palestine should never have had to pay taxes on assistance they needed in the wake of the train derailment.”
Assistance that will be tax-exempt include:
- inconvenience payments from Norfolk Southern
- reimbursements for relocation
- home repairs
- medical expenses
- replacement of clothes and household items.