Some local lawmakers are proposing legislation that would give landlords tax breaks if they provide more lenient leases to small business tenants.
Councilmembers Brad Lander and Keith Powers, state Sen. Brian Kavanagh and Assemblymember Yuh-Line Niou have teamed up to push the measure, according to the New York Daily News.
Under the proposal, the state legislature would authorize New York City to provide landlords 10-year property tax abatements if they renegotiate leases, including overdue rent and limit annual rent increases. Landlords would have a year to apply for tax breaks.
Lander said the legislation would spell out guidelines as to what qualifies for the tax break, and the city would not get involved in every negotiation.
Though the tax break wouldn’t be big enough to cover all the overdue rent accumulated in recent months, the plan aims to save small businesses that have been severely affected by the pandemic.
“The model here is about sharing the pain,” Lander said. “Small businesses have borne too much of it and how to apportion it to the city on the one hand and landlords on the other — that’s what the idea is here.” [NYDN] — Akiko Matsuda