Assemblyman Angelo Santabarbara has introduced legislation to establish a New York State Restaurant Sales Tax Holiday, a statewide initiative aimed at encouraging more people to dine out during traditionally slow months for restaurants. The bill proposes two designated tax-free dining periods – one in winter and one in late summer – to drive business during key off-peak times of the year.

“Our restaurants are essential to local economies, providing jobs and bringing communities together,” said Assemblyman Angelo Santabarbara. “But after the holiday season and before back-to-school, many restaurants see a slowdown in business. This initiative is designed to give people an extra reason to dine out and support their favorite local spots when they need it most.”

Key Provisions of the Bill:

• 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.

New York’s restaurant industry is one of the state’s largest economic drivers, but many establishments struggle with seasonal downturns that put pressure on small business owners and their employees. This legislation creates a short-term boost by encouraging more dining out during a key week, helping restaurants generate additional business during traditionally slower periods.

Other states, including Ohio, have successfully implemented similar tax holidays, helping restaurants stay busy year-round.