Sixteen years can go by in a flash for some people. Conversely, it can seem an eternity for others who are recurrently reminded of an exaction they would rather avoid.
Consider small business owners across a select area of Manhattan, for instance. A recent NYC business article spotlights commercial entities operating between Murray Street and 96th Street, an area “where the cost of doing business is generally higher than other parts of the city.”
That fact alone presents a distinct business challenge, obviously. What adds to it for many of the business players in the above-cited locale is the commercial rent tax they pay annually.
That outlay is onerous for many smaller business entities, and it hasn’t changed for years.
The New York City Council passed a bill last Thursday that materially adjusts the rent-tax provision for the first time in 16 years.
Specifically, the enactment — which is slated to take effect next year in July — will provide long-awaited relief for an estimated 2,700 small businesses by slashing their commercial rent-related tax duties owed the city.
“We are throwing a lifeline to businesses that make our neighborhoods special,” said the bill’s sponsor.
The above-cited article notes that the tax persists in Manhattan despite being repealed long ago in other boroughs.
The relief will certainly be welcome. The “average” business affected by the tax cut will reportedly save between $11,300 and $13,000 annually.
Questions or concerns regarding taxes or any other topic relevant to New York City businesses can be directed to a proven Manhattan business law firm.