The IRS Office of Chief Counsel issued a determination on the subject of the Fire Prevention Fee, which many Californians are subject to. The Court ruled that the $150 Fire Prevention Fee assessed by the California State Board of Equalization (BOE) against each structure in a “state responsibility area” is not deductible as a tax under IRC §164. For details, see Chief Counsel Advice 201310029.

A “state responsibility area” is defined as an area of the state “in which the financial responsibility of preventing and suppressing fires has been determined by the [Board of Forestry and Fire Protection]… to be primarily the responsibility of the state.” Cal. Pub. Res. Code §4102.