State, city officials urge de Blasio to support reforms to commercial rent tax

Proposed bill would lower the rent threshold for businesses that are taxed

From left: Dan Garodnick, Brad Hoylman, Bill de Blasio, Gail Brewer and Letitia James
From left: Dan Garodnick, Brad Hoylman, Bill de Blasio, Gail Brewer and Letitia James

A group of city and state officials is trying to convince Mayor Bill de Blasio to support a bill that will declaw a tax on certain commercial tenants.

The proposed measure increases the rent threshold for a 3.9 percent tax applied to businesses south of 96th Street from $250,000 to $500,000. The rent threshold hasn’t been raised since 2001, and proponents of the bill argue that the tax unfairly burdens small businesses.

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Council member Dan Garodnick, Manhattan Borough President Gail Brewer, Sen. Brad Hoylman, Public Advocate Letitia James and several others penned a letter to the mayor asking for his support, Crain’s reported. But changing the rent range would mean losing $52 million in tax revenue. Garodnick told Crain’s that he could find a way to make up the losses in “less than a minute.”

It’s not clear if the measure will make it into the mayor’s $85 billion budget.

In March, the Real Estate Board of New York wrote a letter to the mayor asking that the bill be included. [Crain’s] Kathryn Brenzel