OLYMPIA – On Friday, January 22, the House of Representatives passed legislation ensuring that state and federal funds designed to aid small businesses during the COVID-19 pandemic stays with small businesses.
House Bill 1095, sponsored by Rep. Amy Walen, D-Kirkland, exempts businesses from paying state taxes on funds received from the federal or state government for COVID-19 relief.
“Our small businesses are hurting. They need help and they certainly shouldn’t be taxed on the very funds that have kept them afloat,” said Walen. “These funds kept their doors open and their employees paid.”
In 2020, the COVID-19 pandemic forced Washington to enact limits on business and social activities to slow the spread of the Coronavirus. The federal government passed aid packages to help keep businesses open and workers employed.
“We need to protect Washingtonians but we also need to protect their livelihoods,” continued Walen. “This is a good step in getting rebuild our economy”
House Bill 1095 passed the house with unanimous support. It now heads to the Senate for consideration.