Ohio-based U.S. Senator Sherrod Brown has penned a letter to the U.S. Department of Treasury requesting residents of East Palestine not to be taxed on Norfolk Southern's payments from a settlement on the 2023 train derailment in the village.

In the letter, Brown says residents of the village are still hurting more than a year after the derailment and now must deal with an additional tax burden.

Brown is requesting the Department of Treasury to make an immediate determination that the event was of a "catastrophic nature" and that the residents not be taxed on the settlement money.

Senator Brown cited Section 139 of the Tax Code, which states that gross income tax should not include any amount received as disaster relief payment.

"It is clear to the residents of East Palestine and those who have visited the community that this disaster was of a catastrophic nature. Thirty-eight railcars from the train derailed, and 11 tank cars carrying hazardous materials ... flew off the tracks and ignited," Brown said.

In the early days of the derailment aftermath, some residents received lump sum payments to cover relocation expenses or other personal expenses stemming from the derailment.

These payments were limited to $1,000 and were issued to those who were forced to evacuate their homes and/or were personally exposed to the contaminants released during the vent and burn.

Some were reimbursed separately to cover things such as relocation and/or lost wages and Norfolk Southern also promoted a program to compensate homeowners whose property values diminished due to the derailment.

"I have heard from those that have had to pay out of pocket for necessities like gas, travel, lodging, air and water purifiers and cleaning services and supplies. It is unacceptable for these residents to have to pay tax for any reimbursements that simply helped make them whole after the derailment," Brown said.

You can read Brown's full letter in the PDF below.