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A special tax for New York bars and restaurants
- As the Covid-19 epidemic weighs heavily on New York’s economic activity, the New York City Council has decided to implement a new tax for the benefit of bars and restaurants in the city, the “COVID -19 recovery charge ”, which can be translated as“ tax for recovery in the face of Covid-19 ”.
- As of October 16, 2020, bars and restaurants in New York have the option of adding a 10% tax to the amount of the bill, excluding taxes and tips. Objective: to compensate for the shortfall linked to the decline in activity during the coronavirus crisis. Note that establishments are free to apply this tax or not.
A tax planned to last …
- The situation is indeed very complicated for New York bars and restaurants. While the city adopted the 4th and final stage of its deconfinement on July 20, 2020, New York’s bars and restaurants have not been able to resume their activities normally. Since September 30, 2020, the capacity of indoor rooms remains effectively limited to 25% of the usual capacity. The “COVID-19 recovery charge” should therefore allow bars and restaurants to increase their income.
- New York City has decided that this new tax will remain in place until 90 days after the return to normal, when bars and restaurants can fully reopen their venues. But the town hall does not indicate for the time being any date for this complete resumption of the activity.
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