Griffin seeks tax relief for spill victims

U.S. Rep. Tim Griffin said Monday that he plans to seek a tax exemption for Mayflower residents compensated because of a March 29 oil spill in their neighborhood.

Griffin, R-Ark., and a member of the House Ways and Means Committee, said he does not believe those residents should be taxed on compensation provided by Exxon Mobil Corp. as a result of the spill.

Exxon Mobil has given two $10,000 checks to residents most affected by a pipeline rupture, which spilled an estimated 147,000 gallons of heavy crude oil into their neighborhood, and $10,000 to some other residents. Exxon Mobil also has provided living expenses and some other needs for residents who had to evacuate their homes. Many still have not moved back.

“The bottom line is that they didn’t ask for this” spill, which has impacted them, Griffin said.

Exxon Mobil spokesman Aaron Stryk said the company did not deduct taxes from the payments. But Griffin said the Internal Revenue Service has said the money would be considered taxable income.

Griffin said he would introduce a bill seeking the exemption this week, but added, “There will be an uphill battle on that, as there always is on” measures applying to specific situations.

For that reason, Griffin also asked Exxon Mobil to increase the money it gives to residents so as to make sure they get the amount of money they were actually intended to receive. The company hasn’t given him a decision yet, he said.

Arkansas, Pages 9 on 07/16/2013

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