26 THE QUEENS COURIER • JUNE 7, 2018 FOR BREAKING NEWS VISIT WWW.QNS.COM
Changes to the New York City Commercial Rent Tax
Attorney At Law
25-59 Steinway Street
Astoria, NY 11103
718-278-3900
WINNER
BEST ATTORNEY
AND
BEST PERSONAL INJURY
ATTORNEY
Call Now & End Your Tax Nightmare!
��������������������������������������
��������������������������������������
��������������������������������
��������������������������������������������������
������������������������������������������
Co-Author of the
best selling book
“Breaking the Tax Code”
��������������������������������
��������������������������������
Salvatore P. Candela, EA, ATA, ABA
Enrolled Agent - Tax Advisor
����������������������������������������������������������������
������������������������������������������������������
BY JOHN SAVIGNANO, CPA
A new law, passed by the New
York City Council on November
30, 2017, made significant
changes to the New York City
Commercial Rent Tax.
Background
Currently, the Commercial
Rent Tax is imposed on tenants
who occupy or use property for
commercial activity between
96th Street and Murray Street
in lower Manhattan with
an annualized base rent of
$250,000 or more. The current
effective tax rate is 3.9%.
Changes under
the New Law
The new Commercial Rent
Tax provision, New York City
Administrative Code section
11-704.4, will become
effective on July 1. 2018.
Under this section, a credit
is provided that results in the
annualized base rent not subject
to tax being increased
from $250,000 to $500,000
for businesses no more than
$5 million of total income
for premises between 96th
Street and Murray Street
that are used for commercial
activities. In addition,
where the annualized base
rent is between $500,000 and
$550,000, there is a credit
applied to the next $50,000
of annualized base rent. The
effective tax rate remains
unchanged.
Effects on Small
Business Owners
Given the stiff competition
from e-commerce businesses,
increasing the amount of
base rent that is not subject
to the Commercial Rent
Tax is necessary to help keep
small businesses in New York
City from going out of business.
Start-ups closely held
family businesses, and small
businesses that serve local
needs will receive the most
benefits from the new tax
law.
John Savignano is a partner
with Savignano Accountants
& Advisors located at 47-46
Vernon Blvd., Second Floor, in
Long Island City. If you have
any questions or require additional
information, please call
John at 718-707-0955.
TAX TIPS