Mayor Linda Gorton is proposing a resolution providing additional tax relief for local businesses. The resolution gives businesses the ability to deduct expenses paid with Paycheck Protection Program funds in 2020. The request, which provides a clear message of support to our local business community, will go before the Urban County Council today.
“Our entire community has been fighting through the effects of COVID-19,” Gorton said. “This opportunity gives our businesses support. Business have been doing all they can to keep their doors open, and employees paid. I’m proud of our business owners for their flexibility in caring for their employees and our community. This is something the City can do to help them … it’s the right thing to do.”
Although the change could have been made through Executive Order, Mayor Gorton values collaborative work with the Council, so today she will ask Council to approve the resolution.
Under the recommendation, businesses will be allowed to deduct expenses paid from PPP loans in 2020. The adjustment follows similar steps taken by the federal government, and under consideration at the state level. This move is expected to save the average Lexington business around $2,500 in local taxes.
The City has taken several actions to help local businesses through the pandemic, including allowing restaurants, bars and retail businesses to expand service onto sidewalks and parking lots, suspending ABC license fees, and offering a small business stimulus program that provided critical financial support for local businesses, especially those owned by minorities and women. There have been additional programs to support individuals and families needing assistance with rent, utilities, and food access.
