Revenue Department Directs Delay of Reporting and Tax Payments for Federal COVID Funding

September 16, 2020

The State Department of Revenue (DOR) has provided guidance concerning reporting and payment of taxes related to federal COVID-19 emergency relief payment. WSHA was pleased with the guidance and as we been vocal about the need for hospitals. The department determined that businesses receiving assistance under these federal programs (including the federal Paycheck Protection Program (PPP)) should not report assistance as gross receipts for B&O tax purposes and should not pay B&O tax on that assistance at the present time. WSHA believes this also applies to CARES Act Provider Relief Fund grant funding and recommends hospitals follow the DOR guidance and do not report or pay taxes on Federal COVID-19 related revenues until additional guidance is given.

DOR is evaluating the impact and forms of COVID-19 relief and plans to request legislation in the upcoming state legislative session exempting certain emergency related payments and expenditures from business and occupation, public use, and retail sales taxes. WSHA and WSHA member hospitals are in the process of reviewing the draft legislation. While the effective date of tax exemptions would likely be retroactive, we believe there could be difficulties obtaining refunds of taxes paid in advance of the legislation. (Andrew Busz,


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