PPP Tax Conformity Action
22 Mar 2021
At our East Side Connect! on March 18th we hosted a conversation with John Perlich and Shannon Watson from the St. Paul Area Chamber of Commerce about the PPP loans from the Federal Government. Our Federal Government has decided not to tax these as revenue but the State of MN still has this in the taxable category. Just this week our Governor has put forward a plan for partial conformity - read more. We've learned that these taxes won't have implications for our 501(c)3 nonprofits: the word from Harrington Langer & Associates - "the short answer is it (PPP loan tax liability) won’t impact nonprofits. Having it considered as taxable income in MN only effects for-profit businesses.”
Keeping reading then reach out to our Legislators and let them know what you think about this:
The Tax Chair in the House is not moving on this - contact him, Representative Paul Marquart
These should be brief, specific, friendly calls for action. We're building relationships with all of these Minnesotans, three of them East Siders. Here's some framework to guide your messaging courtesy the good people at SPAC:
"I'm calling about House File 501 - PPP Tax Conformity - [You're own story] Many businesses used PPP funding to keep employees on payroll and withstand the economic downturn caused by the COVID-19 pandemic. Businesses should not be taxed on the federal PPP dollars that were a lifeline to so many in our state. Please support federal tax conformity for PPP loans and help reignite our economy."
Visit https://www.gis.leg.mn/iMaps/districts/ to find out who represents you and contact information for your state legislators.
For more info on this campaign: https://www.stpaulchamber.com/ppptax.html