Title
A Resolution allowing deductions taken in accordance with Public Law No. 116-260, Section 276, for the purposes of calculating a business' net profit as it pertains to the Urban County's Occupational License Fee for the Tax Year 2020 in order to provide for the same tax treatment of Paycheck Protection Program loans as the Federal Government. [Council Office, Maynard]
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WHEREAS, the President of the United States and the Governor of the Commonwealth of Kentucky have both declared states of emergency in response to the novel coronavirus (COVID-19) pandemic; and
WHEREAS, Mayor Linda Gorton declared, in Executive Order 2020-01, that a state of emergency exists in Lexington-Fayette County; and
WHEREAS, more than three hundred eighty-three thousand (383,000) cases of COVID-19 have been confirmed in the Commonwealth of Kentucky, with more thirty thousand (30,000) in Lexington-Fayette County alone (as of February 10, 2021 and February 11, 2021, respectively); and
WHEREAS, the Federal Government has provided Paycheck Protection Program (PPP) loans, which May be forgivable if the borrower complies with certain conditions, to help small businesses affected by the COVID-19 pandemic keep workers employed; and
WHEREAS, the Federal Government allows PPP loan borrowers to deduct ordinary and necessary business expenses financed with exempt loan proceeds for federal tax purposes; and
WHEREAS, Kentucky House Bill 278, if passed, would allow PPP loan borrowers to deduct ordinary and necessary expenses financed with exempt loan proceeds for state tax purposes; and
WHEREAS, the Urban County Council recognizes the financial impact on local recipients of PPP loans if ordinary and necessary business expenses financed with exempt loan proceeds were not deductible from a business' net profits, at a time when businesses are struggling due to the public health emergency and efforts to stop the spread of COVID-19; and
WHERE...
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