As tax season nears, lawmaker argues against tax on PPP money

A South Shore state senator is co-sponsoring a bill to ensure that federal Payroll Protection Program (PPP) money is not taxed in Massachusetts.
Sen. Patrick O’Connor (R-Plymouth and Norfolk) said he is one of the lead sponsors of SD127, an Act Providing Financial Relief to Small Businesses During the COVID-19 Pandemic, and that he has been “very vocal about making sure [PPP] money is not taxed in Massachusetts.”
“The very last thing we should be doing now is taxing small businesses on money that was used to save people’s jobs and, in many instances, kept the entire business operational,” he said.
O’Connor, who is proposing a repeal of the tax as soon as possible, noted that tax season is upon us and “the further we wait the more complicated this situation becomes.”
“Every day, I hear from constituents on this subject and advocate to my colleagues to make sure we do not tax PPP lifelines that our local small businesses received in their time of need,” O’Connor said.
“Massachusetts needs language in order to exempt a tax,” he continued. “Most other states have adopted that language, Massachusetts has not.”
O’Connor said the bill was filed recently and has been assigned a docket number.
“From there it will get a bill number, will be assigned a committee, have a hearing, get voted out of committee, and then for a vote in the House and Senate before the governor’s desk,” he said.
“The process is too lengthy for this, and that is why we are raising awareness and stressing the urgency of passing this language to make sure PPP Is tax-free as soon as possible,” the senator stressed.
“We are at the start of the legislative process so all bills have to filed [by Feb. 19], and then there are two weeks where legislators review the bills. During this period of time, we typically have sessions to pass time-sensitive legislation. My hope is that we can pass this during this period of time,” he said.
O’Connor believes there is strong bipartisan support for the bill.
State Rep. Joan Meschino (D-Third Plymouth District), a Hull resident, did not respond to an email seeking comment.