City Council vs. de Blasio: Mayor isn’t a fan of reformed commercial rent tax

Council has enough sponsors to override the mayor's veto

TRD New York /
Aug.August 22, 2017 09:50 AM

Dan Garodnick, Bill de Blasio and a vacant NYC storefront

A proposal to declaw Manhattan’s commercial rent tax has pitted Mayor Bill de Blasio against his own party.

A City Council bill that seeks to change how a tax on businesses in Manhattan is applied now has 41 sponsors, meaning that the legislative body could override a mayoral veto, the Wall Street Journal reported. The mayor has said that he’s concerned about losing annual revenue from the tax, which the council estimates to be $55 million.

“[G]iven the uncertainty about the federal budget, health care and tax reform, we don’t feel it’s the right time to take major action on the commercial rent tax,” Freddi Goldstein, a mayoral spokesperson, told the Journal in an email.

The 3.9 percent tax applies to businesses below 96th Street who pay $250,000 or more in annual rent. The bill seeks to increase that threshold to $500,000. The city hasn’t changed the rent range since 2001.

Council member Dan Garodnick proposed the bill in 2015, but the legislation has gained traction as retail in the city struggles. This would be the first mayoral override by the council under de Blasio, should it come to that.

“Manhattan retail is in crisis,” Garodnick said. “We cannot wait any longer.” [WSJ] — Kathryn Brenzel 


Related Articles

arrow_forward_ios
Jay Kriegel (Credit: Kent Presents)

Jay Kriegel, Related senior adviser and ex-mayoral chief of staff, dies

Melania La Rocca

Buildings commissioner talks priorities in final de Blasio years

WeWork layoffs loom, de Blasio is skeptical of commercial rent control

WeWork layoffs loom, de Blasio is skeptical of commercial rent control

The Thurgood Marshall Courthouse in Lower Manhattan (Credit: iStock)

Housing court could get a lot more political under reform plan

WeWork employees speak up to management, NY condo buyers can stay anonymous after all

WeWork employees speak up to management, NY condo buyers can stay anonymous after all

Airbnb lost by a landslide in Jersey City. What went wrong?

Airbnb lost by a landslide in Jersey City. What went wrong?

Airbnb CEO Brian Chesky and Jersey City Mayor Steve Fulop (Credit: Twitter, iStock, Airbnb)

Stakes are high as Jersey City residents vote on Airbnb

Alexandria Ocasio-Cortez, Bernie Sanders and Elizabeth Warren

By the numbers: Breaking down national housing agendas from the far left

arrow_forward_ios