Tax Relief

Eating places can profit from the state’s VAT relief program | Connecticut Information

HARTFORD, CT (WFSB) – Connecticut restaurants have a light at the end of the tunnel as local businesses can withhold sales tax they levy on meals for a week.

The state gives restaurants three options: they can keep sales tax for a week starting Sunday, or there is another week at the end of the year and then next spring. The owner can choose which week they want.

“We saw the governor’s announcement about the state’s sales tax relief. This is especially helpful for a restaurant our size, ”said Jamie McDonald of the Bears Restaurant Group.

The restaurant has seen increased visitor traffic in recent weeks.

“Fortunately, sales have increased in the last month, two months,” he said.

McDonald added that every little bit helps.

“A week of sales tax covers about 50% of our workforce for the week, so it helps a lot,” he said.

After a tough year, he wishes that a little more could be done.

“It would be nice to see such a permanent measure via the COVID shutdown. That would have been one of the simpler things the state could have done, which was sales tax. We’re getting it already. It’s already in our pockets and any sales tax cut goes straight to our bottom line, ”he said.

The biggest question is which week to choose. Some restaurant owners say the summer is better for them because it’s busier and they can keep more. Others say December is busy for them.

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