New York City Council Header
File #: Int 0799-2015    Version: Name: Commercial rent tax.
Type: Introduction Status: Enacted
Committee: Committee on Finance
On agenda: 5/27/2015
Enactment date: 12/22/2017 Law number: 2017/254
Title: A Local Law to amend the administrative code of the city of New York, in relation to the commercial rent tax
Sponsors: Daniel R. Garodnick, Helen K. Rosenthal, Margaret S. Chin, Rosie Mendez, Corey D. Johnson, Ben Kallos, Mark Levine, Julissa Ferreras-Copeland, Robert E. Cornegy, Jr., Ydanis A. Rodriguez, Costa G. Constantinides, Peter A. Koo, Karen Koslowitz, Darlene Mealy, Deborah L. Rose, Fernando Cabrera , Laurie A. Cumbo, Chaim M. Deutsch, Rafael L. Espinal, Jr., Vincent J. Gentile, David G. Greenfield, Barry S. Grodenchik, Andy L. King, Rory I. Lancman, Alan N. Maisel, I. Daneek Miller, Rafael Salamanca, Jr., Ritchie J. Torres, Mark Treyger, Paul A. Vallone, James G. Van Bramer, Jumaane D. Williams, Carlos Menchaca, Daniel Dromm , Stephen T. Levin, Donovan J. Richards, Bill Perkins, Antonio Reynoso, Brad S. Lander, Vanessa L. Gibson, Joseph C. Borelli, Eric A. Ulrich, Steven Matteo
Council Member Sponsors: 43
Summary: This local law would establish a Small Business Tax Credit (“the credit”) against the Commercial Rent Tax. The credit would provide complete tax relief for taxpayers who have incomes of $5 million or less and who pay less than $500,000 per year in rent. Taxpayers who have incomes of $5 million or less and who pay between $500,000 and $550,000 per year in rent, and those taxpayers who have incomes between $5 million and $10 million and who pay less than $550,000 per year in rent would receive a partial, sliding scale credit. Taxpayers who have incomes of more than $10 million would not receive any credit. The credit would be available beginning July 1, 2018.
Attachments: 1. Summary of Int. No. 799-B, 2. Summary of Int. No. 799-A, 3. Summary of Int. No. 799, 4. Int. No. 799 - 5/27/16, 5. May 27, 2015 - Stated Meeting Agenda with Links to Files, 6. Committee Report 2/13/17, 7. Hearing Testimony 2/13/17, 8. Hearing Transcript 2/13/17, 9. Proposed Int. No. 799-A - 7/10/17, 10. Proposed Int. No. 799-B - 11/27/17, 11. Committee Report 11/30/17, 12. Hearing Transcript 11/30/17, 13. November 30, 2017 - Stated Meeting Agenda with Links to Files, 14. Hearing Transcript - Stated Meeting 11-30-17, 15. Int. No. 799-B (FINAL), 16. Fiscal Impact Statement, 17. Mayor's Letter, 18. Local Law 254, 19. Minutes of the Stated Meeting - November 30, 2017
Date Ver.Prime SponsorAction ByActionResultAction DetailsMeeting DetailsMultimedia
12/22/2017BDaniel R. Garodnick City Council Recved from Mayor by Council  Action details Meeting details Not available
12/22/2017BDaniel R. Garodnick Mayor Signed Into Law by Mayor  Action details Meeting details Not available
12/18/2017BDaniel R. Garodnick Mayor Hearing Held by Mayor  Action details Meeting details Not available
11/30/2017BDaniel R. Garodnick City Council Sent to Mayor by Council  Action details Meeting details Not available
11/30/2017BDaniel R. Garodnick City Council Approved by CouncilPass Action details Meeting details Not available
11/30/2017*Daniel R. Garodnick Committee on Finance Hearing Held by Committee  Action details Meeting details Not available
11/30/2017*Daniel R. Garodnick Committee on Finance Amendment Proposed by Comm  Action details Meeting details Not available
11/30/2017*Daniel R. Garodnick Committee on Finance Amended by Committee  Action details Meeting details Not available
11/30/2017BDaniel R. Garodnick Committee on Finance Approved by CommitteePass Action details Meeting details Not available
2/13/2017*Daniel R. Garodnick Committee on Finance Hearing Held by Committee  Action details Meeting details Not available
2/13/2017*Daniel R. Garodnick Committee on Finance Amendment Proposed by Comm  Action details Meeting details Not available
2/13/2017*Daniel R. Garodnick Committee on Finance Laid Over by Committee  Action details Meeting details Not available
5/27/2015*Daniel R. Garodnick City Council Referred to Comm by Council  Action details Meeting details Not available
5/27/2015*Daniel R. Garodnick City Council Introduced by Council  Action details Meeting details Not available

Int. No. 799-B

 

By Council Members Garodnick, Rosenthal, Chin, Mendez, Johnson, Kallos, Levine, Ferreras-Copeland, Cornegy, Rodriguez, Constantinides, Koo, Koslowitz, Mealy, Rose, Cabrera, Cumbo, Deutsch, Espinal, Gentile, Greenfield, Grodenchik, King, Lancman, Maisel, Miller, Salamanca, Torres, Treyger, Vallone, Van Bramer, Williams, Menchaca, Dromm, Levin, Richards, Perkins, Reynoso, Lander, Gibson, Borelli, Ulrich and Matteo

 

A Local Law to amend the administrative code of the city of New York, in relation to the commercial rent tax

 

Be it enacted by the Council as follows:

 

Section 1. The administrative code of the city of New York is amended by adding a new section 11-704.4 to read as follows:

11-704.4. Small business tax credit. a. Definitions. As used in this section, the following terms have the following meanings:

Base rent. The term “base rent” shall mean the base rent calculated without regard to any reduction in base rent allowed by paragraph two of subdivision h of section 11-704.

Income factor. The term “income factor” shall mean:

1. for a tenant with total income of not more than five million dollars, one;

2. for a tenant with total income of more than five million dollars but not more than ten million dollars, a fraction the numerator of which is ten million dollars minus the amount of total income and the denominator of which is five million dollars; and

3. for a tenant with total income of more than ten million dollars, zero.

Rent factor. The term “rent factor” shall mean:

1. for a tenant whose base rent is less than five hundred thousand dollars, one; and

2. for a tenant whose base rent is at least five hundred thousand dollars but not more than five hundred and fifty thousand dollars, a fraction the numerator of which is five hundred and fifty thousand dollars minus the amount of base rent and the denominator of which is fifty thousand dollars.

Total income. The term “total income” shall mean the amount reported by a person, as defined by section 7701 of the internal revenue code, to the internal revenue service for the purpose of the federal income tax in the tax year immediately preceding the period for which the tenant is applying for the credit set forth in subdivision b that is equal to the gross receipts or sales of the person minus any returns and allowances, minus the cost of goods plus the amount of any dividends, interest, gross rents, gross royalties, capital gain net income, net gain or loss from the sale of business property, net farm profit or loss, ordinary income or loss from other partnerships, estates or trusts or other income or loss.

b. Beginning on July 1, 2018 and for each tax year beginning thereafter, a credit shall be allowed against the tax imposed by this chapter as follows: a tenant whose base rent is at least two hundred and fifty thousand dollars but not more than five hundred and fifty thousand dollars shall be allowed a credit in the amount determined by multiplying the tax imposed on the tenant pursuant to section 11-702 minus any allowable credits or exemptions set forth outside this section by the income factor and by the rent factor. If the tenant's base rent is over five hundred and fifty thousand dollars, no credit shall be allowed under this section.

c. The department of finance may promulgate any rules necessary to implement the provisions of this section, including, but not limited to, rules that prevent abuse of this section by related parties.

§ 2. This local law takes effect immediately.

 

RKC 05-21-15 11:15am, amended 03-25-16 9:58am, amended 11-22-17 5:48pm

LS #3355