Minnesota Lawmakers Introduce Bill to Eliminate State Taxes on Coronavirus Small Business Lending
In a video conference on Thursday, April 23, Parliamentary Minority Leader Kurt Daudt, R-Crown, and State Representative Greg Davids, R-Preston, said that under current law the State, small business owners could be liable for state taxes on loans received and forgiven through the Small Business Administration’s federal paycheck protection program, which is part of Congress’ stimulus package against coronaviruses.
PPP loans are exempt from federal taxes, but not from Minnesota state taxes at this time. Daudt and Davids want to change that with a bill they hope to pass next week.
“Minnesota businesses are fighting just to survive right now,” Daudt said. “These loans are a lifeline meant to cover the basics – employee payrolls, rent and utilities. There is no reason the canceled loans should trigger a tax hike at a time when companies can least afford it. “
The bill is still in its early stages, but Daudt said he anticipates it will enjoy bipartisan support.
The proposal came on the same day that Democratic Gov. Tim Walz announced the phased reintroduction of non-essential workers to Minnesota workplaces after more than a month of shelter-in-place due to coronavirus. At a press conference Thursday, Walz said his goal was to return 100,000 people to non-critical industrial, manufacturing and office environments at work on April 27, as long as social distancing, hygiene practices and sanitation are in place. Walz said all workers who can telecommute are always welcome to do so.
As Minnesotans get nervous after weeks of sheltering – some are starting to protest Walz’s decrees – Daudt said he was urging Walz to move forward with reopening businesses, but said that doing it safely is the most important.
“No one is encouraging businesses to open that would endanger the safety of the Minnesotans,” Daudt said. “First and foremost, we want to keep Minnesotans safe. But we believe we can do both, that we can open Minnesota businesses, we can restart our economy, and we can keep Minnesotans safe.”
The SBA reports that more than 46,000 loans, totaling more than $ 9 billion, have been approved for businesses in Minnesota. Since March 16, when Walz first ordered the shutdown of non-essential businesses, more than 536,000 Minnesota residents have applied for unemployment benefits, according to the Department of Employment and Economic Development. ‘State.