U.S. Rep. Tim Griffin has introduced a bill that would make tax-exempt any compensation provided to Mayflower residents as a result of an oil spill in the Faulkner County town on March 29.

Griffin, R-Ark., said Friday that he proposed the Mayflower Oil Spill Tax Relief Act in hopes of ensuring that these residents or anyone on their behalf are not taxed for such disaster-relief payments.

If Congress approves the bill, which he introduced Thursday, it would protect those affected by the oil spill from facing thousands of dollars in additional taxes, said Griffin, a member of the House Ways and Means Committee.

Griffin, who most recently visited the Mayflower neighborhood on Monday, said the idea for this legislation originated when constituents there shared their frustration about the potential taxation.

Exxon Mobil Corp. has already given checks totaling $20,000 to some residents and $10,000 checks to others in addition to other compensation.

Griffin said the Internal Revenue Service has told him that, without the legislation, such payments will be considered taxable income.

“This would include any rent paid for temporary housing for those who were evacuated, tax reimbursements made for lost personal property, right down to paying to replace a grill lost to the spill from a backyard patio,” his office said in a news release. Taxation would apply to any form of payment made directly to, or on behalf of, the oil spill victims.

The congressman noted that in a presidential-declared disaster, such as in storms that have occurred in Oklahoma and New Jersey, any benefits provided are automatically tax-exempt.

“The oil spill in Mayflower has been a difficult ordeal for many families,” Griffin said in an emailed statement. “Their lives were turned upside down and many were impacted financially. Those affected by this nightmare deserve to be compensated fully and fairly, but the IRS plans to tax them on it. … These families didn’t ask for this spill, and they shouldn’t be forced to pay the IRS more because of it.”

Griffin also has asked Exxon Mobil to increase its relief payments to cover the additional tax burden, but he introduced the legislation as another way aimed at helping residents avoid the extra taxes.

Arkansas’ three other House members are co-sponsors of the bill.

Front Section, Pages 3 on 07/20/2013