CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
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AN ORDINANCE relating to taxation; providing relief from taxation of cancellation of indebtedness as income on persons engaging in business in Seattle; and amending Section 5.45.090 of the Seattle Municipal Code.
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WHEREAS, on March 11, 2020, the World Health Organization announced that the novel coronavirus (COVID-19) is officially a global pandemic; and
WHEREAS, on February 29, 2020, the Governor of the state of Washington issued Proclamation 20-05, proclaiming a state of emergency for all counties throughout the state of Washington in response to new cases of COVID-19; and
WHEREAS, these actions are appropriate for public health reasons, but result in severe economic impacts on the economies of the United States of America and Seattle; and
WHEREAS, in response to the economic fallout of the global pandemic, the 116th Congress of the United States passed the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"), an economic stimulus bill; and
WHEREAS, under the CARES Act, the Small Business Administration (SBA), in consultation with the Department of the Treasury, administers the Paycheck Protection Program (PPP) for economic relief; and
WHEREAS, under Section 1102 of the CARES Act, PPP authorizes loans designed to provide a direct incentive for small businesses to keep their workers on the payroll; and
WHEREAS, under Section 1102 of the CARES Act, the SBA will forgive repayment of the PPP loans if all employee retention criteria are met and the funds are used for eligible expenses; and
WHEREAS, under Section 1105(i) of the CARES Act, cancellation of indebtedness is excluded from gross income for purposes of the Internal Revenue Code; and
WHEREAS, under Chapter 5.45 of the Seattle Municipal Code, cancellation of indebtedness would be included in gross income for purposes of the Seattle Business License Tax; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY OF SEATTLE AS ...
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