Under Gov. Newsom’s proposals, PPP and RRF aid would not be taxed, but paid leave would be reinstated.
In a concession to California’s restaurant industry, Gov. Gavin Newsom said Monday that his administration will exclude forgiven Paycheck Protection Program (PPP) loans and Restaurant Revitalization Fund (RRF) grants from operators’ taxable income.
The provision is part of a spending and revenue plan that calls for a number of other moves with implications for the foodservice industry, including a rollback of the higher business tax rates the state imposed at the start of the pandemic. The state figured at the time that it would likely generate a huge deficit otherwise for the fiscal year then underway because of increased spending to combat the crisis and a drop in personal income taxes. Instead, California ended up with a sizeable surplus of funds…