FOR IMMEDIATE RELEASE

May 18, 2005
Contact: Barbara LoMoriello, Legislative Aide -- #(631) 854-4500

But How Will You Figure Out the Tip?
Cooper Calls on State Legislature to Enact Restaurant Tax-Free Weeks

Surrounded by hopeful restaurateurs and leaders of the Long Island business community, Suffolk County Legislator Jon Cooper (D-Huntington) stood inside Huntington’s Indigo Restaurant and called on state lawmakers in Albany to enact two tax-free weeks for restaurants, similar to what is already done for clothing and footwear.

Cooper’s resolution requests that New York State suspend the restaurant sales tax during the same two weeks it does for clothing and footwear retailers. As the father of five kids, Cooper knows firsthand how difficult and expensive it can be to feed and clothe a family. By marrying together tax breaks for these two essentials, Cooper hopes to further fuel local economies while also making it easier for hungry and hectic working families—who are the consumer engines of the American economy—to enjoy a meal out.

"By affording diners a break on their dinner check, this tax exemption would not only help families and restaurants but would also help other sectors of the economy that ‘feed’ off the restaurant industry," says Cooper. "Instead of the passé ‘trickle down economics’ of twenty years ago, this tax break would infuse money from the bottom of the system and let it percolate up."

Every dollar spent in New York restaurants generates almost an equal amount (95 cents) in sales for other industries in the state. The restaurant industry's direct sales in 2004 were nearly 4 percent of the U.S. gross domestic product.

"I believe it is a great opportunity for the dining public and restaurants," states Claudia Bruno, executive director of the Long Island office of the New York State Restaurant Association. "Diners might try a new restaurant or order the appetizer or dessert they previously might have passed up. This will increase business for the restaurants and customers will receive more value for their money. It’s a win-win."

Unlike tax loopholes created for huge, multi-national, multibillion-dollar corporations, this exemption would primarily help small and independent "mom and pop shops." Seventy-five percent of eateries are single-unit, locally owned operations with less than 20 employees. Despite this seemingly small number of per capita workers, the restaurant industry employs an estimated 12.2 million people nationwide, making it the country’s largest employer outside of government. In the Empire State, 7.4 percent (638,200) of New York residents make their living in the food-service industry. And while other industries are shipping jobs overseas, by 2014 the restaurant industry will employ an additional 1.5 million workers to meet labor demands.

"Programs such as these have always been successful in driving immediate sales and provide an immense boost to our efforts to generate tourism business,” says Moke McGowan, president of the Long Island Convention & Visitors Bureau.

"Long Islanders are fortunate to have thousands of restaurants to choose from, ranging from cutting edge Italian to Pan-Asian and almost everything in between,” adds Ron Beigel, Long Island Editor of the 2004/05 Zagat Survey. "I am certain that restaurant owners and their employees who rely on gratuities will welcome the increase in patronage, especially on weeknights, as a result of a sales tax- free week. Diners should book reservations early, whether they're trying out a new place or returning to an old favorite."