At the same time the National Restaurant Association is warning that a ruling made by the Internal Revenue Service creates unexpected tax liabilities for restaurants and is a “shock to thousands of restaurant operators,” the city of Yonkers has launched a promotion designed to help boost eateries while inviting residents and city visitors to receive special discounts and extras when dining.
From left, Yonkers Planning Commissioner Lou Albano; Councilwoman Shanae Williams: Councilwoman Tasha Diaz; Downtown BID Executive Director Sara Brody; Mayor Mike Spano; Blue Door Art Gallery Executive Director Julie Cousens, and Roberto Espiritu, co-owner of La Pinata Bakery.
The association reported that because of an IRS ruling, restaurants that were hurt by the Covid pandemic and accepted federal funds under the Paycheck Protection Program will lose the ability to deduct from their taxes any expenses paid using loan money after those loans have been forgiven.
“This undermines the survival intent of the PPP program by imposing an unexpected tax liability of 25% to 35% on forgiven loans,” said Sean Kennedy, executive vice president for public affairs at the National Restaurant Association. “Restaurants that obtained a PPP loan to support employees and pay bills should not be facing unexpected, unintended tax burdens that further depletes their cash on hand.”
Meanwhile, the Yonkers Downtown Summer Celebration represents the antithesis of the IRS ruling in that it seeks to promote the economic health of restaurants located in the Yonkers Downtown Business Improvement District while boosting the overall Yonkers economy.
At a noontime launch event today, Mayor Mike Spano and BID Executive Director Sara Brody were to appear with a number of restaurant operators to announce a list of discounts along with offers of free food and beverages. Typical offerings include 10% or 15% off with minimum purchases of $20 or $50, free glasses of wine and free desserts with dinners.
“Continuing the Yonkers is Back to Business campaign with the Downtown Summer Celebration is a great way to boost the local economy and allow residents and visitors to dine at some of their favorite restaurants at special discounts,” Spano said. “The newest iteration to the campaign is meant to spur our growing business community and show that Yonkers is stronger than ever.”
Brody said, “There are a wide variety of restaurants and businesses in the downtown area that been thriving for many years, so it is important to us at the Yonkers Downtown BID to support these staples of the community.”
The Downtown Summer Celebration, which runs until the end of the month, is the second event in the “Yonkers is Back to Business!” promotional campaign. The first event, called “Christmas in July,” was held July 24 at the Cross County Shopping Center.
The “Yonkers is Back to Business!” campaign runs through November and is an outgrowth of the “Generation Yonkers” promotional campaign that is in its seventh year.
