Utahns will not have to pay state income tax on money received through COVID-19 relief funds because of legislation passed by the state Legislature during its recent special session. State lawmakers passed SB6005, “Income Tax Amendments,” with the goal of “easing burdens for Utah families and businesses,” according to a news release.
“Eliminating income taxes on money individuals and businesses received from the CARES Act or PPP loans will help Utahns overcome current challenges and move forward on a path of recovery and success,” said Rep. Robert Spendlove, R-Salt Lake City, who sponsored the bill in the House. The bill was passed during the special session in order to allow thE state tax commission time to make the changes for 2020 taxes, the Legislature said.
“COVID-19 has impacted everyone in our state,” said Sen. Wayne Harper, Senate sponsor of SB6005. “As state leaders, we want to ensure that Utahns and Utah businesses keep the rebates and grant funds to utilize for their specific situations, without the concern of taxation. Prohibiting all state income tax on COVID-19 funds and individual federal rebate checks provides Utahns with more resources during these challenging times.”