See full article here: https:\/\/www.6sqft.com\/nyc-pols-introduce-legislation-that-would-temporarily-suspend-commercial-rent-tax\/<\/p>\n
By Michelle Cohen<\/em><\/p>\n The Covid-19 pandemic, among its many impacts, has drastically underscored the need for ways to mitigate steep commercial rents, such as rent regulation and temporary rent relief. Several local politicians have suggested solutions, including the temporary suspension of commercial rent tax. This week, New York City Council Majority Leader Keith Powers, Manhattan Borough President Mark Levine, and Council Member Gale Brewer introduced legislation that would accomplish the latter.<\/p>\n A rate of 3.9 percent of businesses\u2019 annual rent is currently charged to establishments south of 96th Street in Manhattan. The new bill gives a helping hand to Manhattan\u2019s business recovery effort by suspending the tax in full for three years.<\/p>\n The legislation is co-sponsored by Council Member Kalman Yeger, Council Member Gale Brewer, Council Member Carlina Rivera, Council Member Julie Menin, Council Member Erik Bottcher, Council Member Shaun Abreu, Council Member Chris Marte, and Council Member Diana Ayala.<\/p>\n \u201cThe sharp decline in office workers and tourists has devastated businesses south of 96th Street, so suspending the Commercial Rent Tax will give them some relief as they attempt to keep their doors open,\u201d said Manhattan Borough President Mark Levine in a statement. \u201cA strong recovery for our entire borough requires creative solutions to support small businesses and their employees.\u201d<\/p>\n City Council Majority Leader Keith Powers said in a statement, \u201cThe pandemic devastated our city\u2019s small businesses. Relieving the commercial rent tax puts money back into the pockets of struggling business owners. Our city\u2019s recovery is contingent on Manhattan\u2014we need to be doing everything possible to support these establishments as owners work tirelessly to pay bills, bring back customers, and keep their doors open.\u201d<\/p>\n As 6sqft previously reported<\/a>, small businesses in New York City have been struggling to stay afloat, especially those which needed extra time to reopen because of the coronavirus pandemic. A survey from the Hospitality Alliance found that only 19 percent of city businesses paid rent in June of 2020 and only 26 percent of landlords waived rent. Council Member Keith Powers released a subsequent report<\/a> detailing ways to save small businesses and prepare for a post-COVID-19 world.<\/p>\n