Legislation Details

Int. No. 543

Introduced by the Speaker (Council Member Vallone) and Council Members Berman, DiBrienza, Malave-Dilan, Freed and Michels; also Council Members Eisland, Fisher, Harrison, Koslowitz, McCaffrey and Robinson-read and referred to the Committee on Finance.

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

Be it enacted by the Council as follows:

                     Section 1. Paragraph 2 of subdivision b of section 11-704 of the administrative code, as amended by local law number 63 for the year 1997, is amended to read as follows:

                     (2) A tenant whose base rent, (i) for tax years beginning on or after June first, nineteen hundred eighty-one and ending on or before May thirty-first, nineteen hundred eighty-four, is not in excess of four thousand nine hundred ninety-nine dollars per year, (ii) for the tax year beginning June first, nineteen hundred eighty-four and ending May thirty-first, nineteen hundred eighty-five, is not in excess of seven thousand nine hundred ninety-nine dollars per year, (iii) for the tax years beginning on or after June first, nineteen hundred eighty-five and ending on or before May thirty-first ninety-four, is not in excess of ten thousand nine hundred ninety-nine dollars per year, (iv) for the tax year beginning June first, nineteen hundred ninety-four and ending May thirty-first, nineteen hundred ninety-five, is not in excess of twenty thousand nine hundred ninety-nine dollars per year, (v) for the tax year beginning June first, nineteen hundred ninety-five and ending May thirty-first, nineteen hundred ninety-six, is not in excess of thirty thousand nine hundred ninety-nine per year, (vi) for the tax year beginning June first, nineteen hundred ninety-six and ending May thirty-first, nineteen hundred ninety-seven, is not in excess of thirty-nine thousand nine hundred ninety-nine dollars per year, [and] (vii) for tax years beginning on or after June first, nineteen hundred ninety-seven, and ending on May thirty-first, nineteen hundred and ninety-nine is not in excess of ninety-nine thousand nine hundred ninety nine dollars per year, (viii) for the tax year beginning on June first, nineteen hundred and ninety-nine and ending on May thirty-first, two thousand, is not in excess of two hundred twenty-four thousand nine hundred and ninety-nine per year, and (ix) for the tax-year beginning on June first, two thousand and ending on May thirty-first, two thousand one, is not in excess of four hundred forty-nine thousand nine hundred and ninety-nine per year calculated without regard to any reduction in base rent allowed by paragraph two of subdivision h of this section, shall be exempt from the payment of the tax imposed by this chapter with respect to such rent, provided, however, that where the base rent of such tenant is for a period of less than one year, such base rent shall, for purposes of this paragraph, be determined as if it had been on an equivalent basis for the entire year. Notwithstanding the preceding sentence, [(viii)] (x) a tenant whose base rent for the tax year beginning June first, nineteen hundred eighty-four and ending May thirty-first, nineteen hundred eighty-five, is at least eight thousand dollars per year, nut not in excess of ten thousand nine hundred ninety-nine dollars per year, shall be exempt form the payment of the tax imposed by this chapter with respect to such rent for the period beginning December first. nineteen hundred eighty-four and ending May thirty-first, nineteen hundred eighty-five, and [(ix)) (xi) a tenant whose base rent for the tax year beginning June first, nineteen hundred ninety-five and ending May thirty-first, nineteen hundred ninety-six, is at least thirty-one thousand dollars per year, but not in excess of thirty-nine thousand nine hundred ninety-nine dollars per year, shall be exempt form the payment of the tax imposed by this chapter with respect to such rent for the period beginning September first, nineteen hundred ninety-five and ending May thirty-first, nineteen hundred ninety-six.

                     § 2. Paragraph 2 of subdivision h of section 11-704 of the administrative code, as amended by local law number 63 for the year 1997, is amended to read as follows:

                     (2) in the case of any taxable premises located in the borough of Manhattan south of the center line of ninety-sixth street, the base rent for such premises shall be reduced by (i) fifteen percent for the period beginning March first, nineteen hundred ninety-six and ending May thirty-first, nineteen hundred ninety-six, (ii) twenty-five percent for the period beginning June first, nineteen hundred ninety-six and ending August thirty-first, nineteen hundred ninety-eight, [and) (iii) thirty-five percent for [periods] the period beginning September first, nineteen hundred ninety-eight and [thereafter] ending May thirty-first, nineteen hundred ninety-nine, and (iv) 51.67 percent for the period beginning June first, nineteen hundred ninety-nine and ending May thirty-first, two thousand one, such reduction to be made after all other exemptions and deductions authorized by this chapter have been taken. Notwithstanding any provision of law to the contrary, for the period beginning June first, two thousand and one, the tax authorized by this chapter shall not be imposed on any property located in the borough of Manhattan south of the center line of ninety-sixth street.

                     § 3. Subdivision 3 of section 11-704.3, as amended by local law number 63 for the year 1997, is amended to read as follows:

                     (3) For [each] the tax [year] years beginning on [or after] June first, nineteen hundred ninety-seven, and ending on May thirty-first nineteen hundred and ninety-nine, a credit shall be allowed against the tax imposed by this chapter, such credit to be determined in accordance with the following table:

                     If the tenant's base rent is over one hundred thirty-nine thousand nine hundred ninety-nine dollars, no credit shall be allowed under this subdivision. For purposes of this subdivision, 'base rent' shall be calculated without regard to any reduction in base rent allowed by paragraph two of subdivision h of this section.

                     § 4. Section 11-704.3 is amended by renumbering the existing subdivision 4 as subdivision 6 and adding new subdivisions 4 and 5 to read as follows:

                     (4) For the tax year beginning on June first, nineteen hundred and ending on thirty-first, two thousand, a credit shall be allowed against the tax imposed by this chapter, such credit to be determined in accordance with the following table:

                     If the tenant's base rent is over three hundred twenty-four thousand nine hundred ninety-nine dollars, no credit shall be allowed under this subdivision. For purposes of this subdivision, 'base rent' shall be calculated without regard to any reduction in base rent allowed by paragraph two of subdivision h of this section.

                     (5) For the tax year on June first, two thousand and ending on May thirty-first, two thousand one, a credit shall be allowed against the tax imposed by this chapter, such credit to be determined in accordance with the following table:

                     If the tenant's base rent is over six hundred thousand nine hundred ninety-nine dollars, no credit shall be allowed under this subdivision. For purposes of this subdivision, 'base rent' shall be calculated without regard to any reduction in base rent allowed by paragraph two of subdivision h of his section.

                     § 5. This local law shall take effect immediately.

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Note: Matter in italics is new; matter in brackets [ ] to be omitted.