Urge Your Minnesota State Representative to Pass Paycheck Protection Program (PPP) Federal Tax Conformity & Support Main Street

May 03, 2021

The Problem

Last year, the federal government enacted legislation to provide emergency loans to help small businesses survive through the COVID-19 pandemic – These Paycheck Protection Program (PPP) loans were never intended to be taxed. However, existing Minnesota law requires businesses that received PPP loans to pay an additional 9.8% in taxes if the state legislature does not act. There were 102,000 of these loans in Minnesota totaling $11.3B dollars. Many independent small business pharmacies across the United States and specifically in Minnesota utilized this federal loan opportunity. The economic impact is substantial.

Legislative Action Thus Far:

Earlier this year, the Republican led Minnesota Senate passed a full PPP Tax Conformity Bill, SF 263 which would allow ALL small businesses that received PPP loans to take deductions for allowable expenses. The DFL House majority introduced its own legislation (in the Tax Omnibus bill), but this misguided proposal only helps small businesses that received up to $350,000 in PPP aid - requiring all others to pay a crippling 9.8% in additional taxes!

Act Now: (Act before legislative adjournment on May 17, 2021)

Right now, the state of Minnesota is running a substantial budget surplus, and state governments have and will continue to receive an estimated $4.9 billion in COVID-19 related aid with the state receiving an estimated $2.6 B from the federal government. The House Tax Omnibus, which severely limits tax relief to Minnesota small businesses—like community and independent pharmacies—is completely unacceptable. It is imperative your voice be heard at the State Capitol!

Call or email your State Representative and urge them to pass legislation that will not leave Minnesota’s small businesses behind. Specifically, ask State Representatives to abandon their misguided proposal (resulting in 9.8% in additional taxes) within their Tax Omnibus bill and rally behind the Senate’s SF 263. Please know that letters and calls do make a difference!

Step 1: Input your home or GNP store address Here to find your respective Minnesota State Representative. Click through to find their emails and phone numbers.

Make sure you select your MN STATE REPRESENTATIVE, or you will not reach the correct office. Be sure you DO NOT select your MN Senate member, US Representative or US Senator.

Step 2: Use the below sample letter/talking points to Draft an Email Communication and/or Call your State Representative.

Subject: Please Pass PPP Federal Tax Conformity & Stand Up for Main Street 

Dear Representative LAST NAME,

I am an independent pharmacist in Minnesota and small business owner in [COMMUNITY NAME]. Facing an international pandemic over the past year has been incredibly difficult for all of us, and I took out small business paycheck protection program (PPP) loans to help keep my doors open and keep my amazing workers employed during these unprecedented times so that my pharmacy could continue to provide care and essential services to patients in my community in Minnesota. PPP loans were not meant to be taxed, but without legislative action, my pharmacy and thousands of other small businesses across Minnesota will be hit with a whopping 9.8% state tax. This will be detrimental to Main Street and businesses like mine. What’s more, with other border states having acted to conform to federal tax code and not tax PPP loans, it also makes our state less competitive and puts us at a significant disadvantage. 

I am proud to be a community pharmacist, neighbor, employer and member of my community. Please stand up for independent pharmacists and Main Street and pass full federal tax conformity now for PPP loans. I ask for your support of the Senate Chamber’s Full PPP Tax Conformity bill – SF 263. Small businesses like mine, especially as a provider of healthcare to thousands of patients in my Minnesota community, should not be punished for acting in good faith or held hostage over political games that will put our state’s economic recovery at risk. Thank you.