Lawmaker proposes bill aimed at helping small business owners deal with PPP taxes

Mar 3, 2021, 5:38 AM
utah state capitol critical race theory debate transgender girls sports...
(Utah State Capitol complex. Paul Nelson, file)
(Utah State Capitol complex. Paul Nelson, file)

SALT LAKE CITY – Some small business owners in Utah are getting some unexpected tax bills connected to their use of Payroll Protection Program money from the federal government.  One lawmaker is proposing a bill that would create grants to help business owners with these expenses.  

District 32 Representative Suzanne Harrison says some small business owners are telling her how surprised they were when they went to file their state taxes.  She says PPP loans were not going to be considered as taxable income for federal taxes, however, she says the state looks at those loans a different way.

“Utah currently plans to treat the forgiven loans as taxable income,” Harrison says.  “Businesses that received up to $150 thousand in federal Paycheck Protection Program loan forgiveness are now getting unexpected tax bills from the state.”

She’s promoting House Bill 445, which would create grants of up to five thousand dollars to help business owners pay their state taxes.  However, she says the grants would only go toward employers that accepted no more than $150 thousand in federal money.  Plus, it would only go to business owners that went through an economic downturn during the year.

Harrison says, “You would have to have seen a loss in revenue of 25% from 2019 to 2020.  So, we’re really trying to target those struggling, small businesses.”

Harrison acknowledges that time is quickly running out on the 2021 legislative session, so she has doubts that her bill would be considered before Friday.  However, she would like to bring the bill back for discussion during a special session.

“It looks like it’s not going to be addressed this year,” she says.

Today’s Top Stories


Lions Not Sheep owner Sean Whalen is pictured...
Samantha Herrera

Utah business Lions Not Sheep responds to FTC fraud claims

Owner Sean Whalen posted an almost 15-minute-long video responding to the FTC's fine and complaint about Lions Not Sheep.
23 hours ago
electric vehicles...

Most electric vehicles won’t qualify for federal tax credit

As of now, its estimated that about 50 of the 72 electric, hydrogen or plug-in hybrid models that are sold in the U.S. wouldn't meet the requirements.
23 hours ago
A paper reading IRS, internal revenue service is pictured...
Amie Schaeffer

Inflation Reduction Act would provide nearly $80 billion for IRS

The Inflation Reduction Act would provide almost $80 billion in funding to the IRS, but what would it be used for?
23 hours ago
President Trump raises fist...

Trump says he took the Fifth Amendment in NY investigation

WASHINGTON (AP) — Donald Trump says he invoked the Fifth Amendment and wouldn’t answer questions under oath in the long-running New York civil investigation into his business dealings. Trump arrived at New York Attorney General Letitia James’ offices Wednesday morning, but sent out a statement more than an hour later saying he declined to answer […]
23 hours ago
Former President Donald Trump is pictured. The FBI just conducted a raid on his home....
Mark Jackson

Utah reaction to the FBI search of Trump’s Mar-a-Lago estate

The FBI search on former president Donald Trump's Mar-a-Lago home is prompting a lot of reaction. Two experts provide a local take.
2 days ago
Rep. John Curtis is pictured. He sponsored the Informing Consumers about Smart Devices Act...
CHRIS JACOBS and Samantha Herrera

New bill from Rep. John Curtis takes aim at devices that can record unknowing consumers

The Informing Consumers about Smart Devices Act is sponsored by Rep John Curtis. It will require companies to inform consumers if a device can record them.
2 days ago

Sponsored Articles

Lawmaker proposes bill aimed at helping small business owners deal with PPP taxes