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<br />Councilmember Riley introduced the following resolution and moved for its adoption: <br /> <br />RESOLUTION #21-046 <br /> <br />RESOLUTION SUPPORTING LEGISLATION ADOPTING MINNESOTA TAX <br />CONFORMITY FOR PAYROLL PROTECTION PLAN (PPP) LOANS <br /> <br /> WHEREAS, Minnesota businesses are struggling to retain employees and stay open as the <br />impacts of the COVID19 pandemic continue; and <br /> <br /> WHEREAS, many Ramsey businesses will face an unexpected tax bill if legislators and <br />Gov. Tim Walz fail to pass an early tax conformity bill; and <br /> <br /> WHEREAS, Congress provided an additional lifeline to businesses in December by <br />authorizing a second round of Paycheck Protection Program (PPP) loans and setting clear guidance <br />about the federal tax treatment of forgiven loans and deducting allowed expenses; and <br /> <br /> WHEREAS, without action by the Minnesota Legislature to pass a bill conforming to the <br />federal changes, forgiven PPP loans will be taxed as income on Minnesota tax returns; and <br /> <br /> WHEREAS, further deduction conformity is needed for businesses that paid for allowed <br />expenses with forgiven, untaxed PPP loans; and <br /> <br /> WHEREAS, SF 263 and HF 501 have been introduced in the Minnesota Senate and <br />House, and this legislation would provide for conformity on PPP loans and it would also allow S <br />Corps to file taxes as a C Corp to allow SALT taxes above $10,000 to be deducted on the federal <br />returns of Minnesota businesses; and <br /> <br /> WHEREAS, delays in passing this legislation is problematic as a tax-filing deadlines are <br />quickly approaching. <br /> <br />NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF <br />RAMSEY, ANOKA COUNTY, STATE OF MINNESOTA, as follows: <br /> <br />1) That the City of Ramsey hereby supports and encourages the Minnesota legislature and <br />Governor Walz to adopt quick passage of SF 263 and HF 501 for the benefit of Ramsey <br />businesses. <br /> <br />The motion for the adoption of the foregoing resolution was duly seconded by Councilmember <br />Woestehoff, and upon vote being taken thereon, the following voted in favor thereof: <br /> <br /> Mayor Kuzma <br /> Councilmember Riley <br /> Councilmember Woestehoff <br /> Councilmember Howell <br /> Councilmember Musgrove <br /> Councilmember Specht <br /> <br /> <br />