SHOW YOUR SUPPORT:
SIGN ON TO LETTER URGING UTAH'S LEADERSHIP
TO PROVIDE TAX EXEMPTION FOR PPP LOANS
Dear Business Leader:
The
Point of the Mountain Chamber is pleased to be part of the Utah Chamber Coalition, comprising more than 25 chambers across Utah is concerned about the State’s decision to tax corporate recipients of the federal Paycheck Protection Program (PPP). Throughout the pandemic, our focus has been to promote policies that seek to mitigate the economic consequences presented by COVID-19, and we believe it is important as representatives of business and community leaders from every part of Utah to express our concern on behalf of those who will be adversely affected by this decision.
The Coalition is sending a letter on behalf of the business community to Governor Cox and Utah’s legislative leadership urging them to provide an exception for the small businesses that received PPP loans and for whom this tax would be a hardship.
As President & CEO of the Point of the Mountain Chamber, I invite you to join with me in signing the letter and showing support for Utah Businesses, especially those hit hardest during this pandemic. If you would like to be listed in support of the letter copied below, please
sign on by clicking the button.
The deadline to sign os today, Monday, March 1, at 11:00 a.m.
Sign the Letter:
Mark Welcker
President & CEO
Point of the Mountain Chamber
LETTER:
"The Utah Chamber Policy Coalition, comprising more than 25 chambers across Utah — along with individual members and organizations — is writing to express concern about the State’s decision to tax corporate recipients of the federal Paycheck Protection Program (PPP).
"Throughout the pandemic, our focus has been to promote policies that seek to mitigate the economic consequences presented by COVID-19, and we believe it is important as representatives of business and community leaders from every part of Utah to express our concern on behalf of those who will be adversely affected by this decision. We recognize that not all businesses in Utah received the benefit of a PPP loan. We further recognize that not all who received loans have experienced significant adverse consequences related to the pandemic. Some have suffered greatly. Others have weathered well. While at this writing many are still fighting for survival.
"It is our belief that Utah’s current position of being one of only a handful of states to tax PPP loans places an unnecessary burden on these businesses, and while we acknowledge the uniqueness of the State’s position, we request that PPP loan taxation be removed, specifically for those businesses still struggling. The federal funds were directed to assist employers in saving jobs by providing for their employees, which they have done. The State has derived benefit from appropriate taxation on income, as well as the heroic endeavors of these businesses to stay open and keep Utah’s economy first in the Nation.
"We believe the policy of taxing this assistance, when even the federal government and the vast majority of states have determined otherwise, is an anomaly for a state that prides itself on working with the private sector to ensure Utah’s economy thrives for individuals, families, and communities. Many of your constituents work in disparate locales for small retail shops like nail salons, pet care, and boutique stores that are integral components to Utah’s communities.
"We understand the limited amount of time left in the 2021 Legislative Session, and while we think there is sufficient time to address this issue, if a solution cannot be reached during this session we encourage you to act on the issue during the interim. Given that many businesses will not be responsible to pay these taxes until next year, we would like the conversation to continue, and we offer to convene a group of business leaders to discuss this matter and share experiences and perspectives.
"The State has a significant amount of one-time revenue available this year. Part of that revenue comes from these loans, and we recommend the use of some of those funds to provide continued business relief. This is not inconsistent with the Utah Legislature which has been a strong supporter of business.
"Many of our hardest hit industries — hospitality, restaurants, entertainment, and commercial real estate — continue to suffer. Many business owners have slashed their personal wages to keep employees on the payroll, cut benefits to sustain the workforce, or delayed investments in inventory and capital improvements. Providing this help would allow them to move forward, reinstating some of the benefits that were lost to families and future needs. Moreover, we encourage the legislature and executive branch to provide an exception for small businesses still struggling to outlast the pandemic, and we are committed to working toward a solution that can provide targeted relief for imperiled companies, helping them to stay open to continue supporting all Utahns who depend on them."