Proposed bill hopes to support local restaurants with sales tax holiday

ALBANY, N.Y. – How does tax-free dining sound? Assemblyman Angelo Santabarbara introduced a bill on Thursday to establish a state restaurant sales tax holiday.

The bill proposed creating two weeks of tax-free dining each year, one in February and another in August. During these weeks, food and non-alcoholic beverages purchased at restaurants would be exempt from sales tax.

Here’s a breakdown of the bill’s provisions:

• Winter Sales Tax Holiday: The second full week of February, a time when restaurants experience a decline in customer traffic following the holiday rush.
• Summer Sales Tax Holiday: The third full week of August, when tourism slows and families prepare for the school year.
• Encouraging Dining Out: During these periods, food and non-alcoholic beverages purchased at restaurants, diners, and cafés licensed under Article 20-C of the New York Agriculture and Markets Law will be exempt from state sales tax – giving diners another reason to eat out and support their local restaurants.
• Local Sales Tax Flexibility: The bill does not impact local sales tax, but counties and municipalities may opt to waive their portion under existing law.
• Economic Impact Review: The Department of Taxation and Finance will conduct a two-year economic impact analysis to assess the program’s effectiveness.

The bill aimed to encourage more people to dine out during months that are usually slower for restaurants. Santabarbara says Ohio has implemented similar tax holidays, and it has helped keep the buzz for local restaurants year-round.

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