Restaurants were among the hardest hit businesses during the pandemic. In an effort to bring some relief, during the 2021 Legislative session legislators passed Senate Bill 1, sponsored by Senators Wirth, Candelaria, and Correa Hemphill, and Representative Martinez.
Beginning in March and ending in July of 2021, the bill provided restaurants the option to deduct their gross receipt taxes, but few are taking advantage of this legislation.
Restaurants have the option to either continue charging GRT to their customers and keep the amount collected as revenue or temporarily halt charging GRT to their customers. Yet, as of May 11, only 552 GRT returns have claimed the deduction, amounting to $5.6 million in deductions – or about $10,000 per return.
For more information from the Taxation and Revenue Department on how to take advantage of this tax holiday, click here.