Small businesses in NYC will receive a commercial rent tax break.
NEW YORK CITY—Small businesses in New York City will get a break in commercial rent taxes. Effective July 1, 2018, the threshold for Manhattan's commercial rent tax will increase.
For the tax to kick in, the minimum amount of annual rent paid will go up from $250,000 to $500,000, for businesses with an income up to $5 million.
The benefit also will apply on a sliding scale for businesses with income between $5 million to $10 million or paying $500,000 to $550,000 in rent. The city projects a reduction of taxes for 2,700 small businesses, including 1,800 businesses that will no longer pay tax at all. Under this measure, the average business owner will receive between $11,300 and $13,000 in annual tax relief.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
