This funding package is broken down into three components – $88 million in direct relief payments from the Department of Revenue to businesses closed as a result of the current “Pause”, $112 million to Minnesota counties to support businesses, and $14 million in direct relief payments from Department of Employment and Economic Development for movie theaters and convention centers.
Included with the funding support were waivers to State fees and extension of unemployment benefits. More information will be coming out soon. Below are more details on what is known now.
Business Relief Payments
1) Establishes a $88 million business relief program administered through the Department of Revenue. Payments range from $10,000 to $45,000, depending on the number of employees. Businesses must:
- be registered as of Nov. 1, 2020, to pay unemployment tax;
- be closed to the public due to Executive Order 20-99 closing places of public accommodation;
- have a NAICS code as a brewer, winery, distillery, fitness and recreational sports center, bowling center, specialty food business, drinking place for alcoholic beverages, or restaurant;
- have an active sales tax account as of Nov. 1, 2020, for a physical location in Minnesota;
- have filed all 2019 and 2020 sales tax returns (up to Nov. 1, 2020) or have an open audit or assessment for sales tax due for this time period;
- have experienced at least a 30 percent decline in taxable gross receipts (based on Department of Revenue records) between Apr. 1 and Sept. 1, 2020, and the same time period in 2019; and
- have taxable gross receipts from retails sales in 2019 over $10,000
- also allows a business with no employees in covered employment to qualify for payments if the business has met all the above requirements other than the NAICS code requirement, provided that the business stated in their sales tax permit application that it was operating under one of the qualifying industry codes
- appropriation expires on Mar. 15, 2021.
2) $112 million is appropriated to Minnesota counties to be then be distributed to businesses within the county. The amount each County receives will be through a formula. More information will come out when Hennepin County provides details on its allocation. Businesses can receive relief dollars both from the direct funds through the Department of Revenue listed above and through the county relief program.
3) $14 million is appropriated to the Department of Employment and Economic Development to create and administer a grant program to assist movie theaters and convention centers.
- Qualifying movie theaters will receive a grant of $15,000 per screen for the first two screens in the theater and an additional $10,000 for each additional screen, with a maximum grant per theater of $150,000.
- Specifies that grant funds must be used for the operating expenses of that theater.
- Qualifying convention centers will receive a grant of up to $500,000 in an amount in proportion to the size of the venue and its workforce.
Regulatory Relief
Requires the Department of Agriculture to waive the late fees if a licensed food retailer, manufacturer, wholesaler, or broker renews their license after the applicable deadline in 2021.
- Waives the annual caterer’s permit and 2:00 a.m. permit fees in calendar year 2021.
- Requires the Metropolitan Council to refund wastewater permit fee paid in 2020 to breweries that produce less than 20,000 barrels per year. Also requires the council to apply a credit up to $2,000 for strength charges incurred in 2020 to any brewery that falls within the Metropolitan Council Environmental Services Microbrewery Program.
- Appropriates $142,000 from the general fund in fiscal year 2021 to the Metropolitan Council to offset wastewater revenue lost from issuing the refunds and credits to breweries under section
Additional Unemployment Benefits
Provides up to 13 weeks of additional special unemployment benefits to individuals who exhausts their regular unemployment benefits, state, federal extended benefits, and not receiving benefits under CARES Act, other federal employment extension benefits, or any other extension benefits at the state or federal levels.
- Makes benefits available from the unemployment insurance trust fund from Dec. 27, 2020, through Apr. 10, 2021
Source: E-news www.minneapolismn.gov
