Commercial Property Tax Breaks Proposed by NY Lawmakers

On Monday, August 17, 2020, NY lawmakers proposed a law giving commercial property owners a break on property taxes in exchange for a renegotiation with their small-business tenants. Small business owners in NY, especially restaurant owners, are continually strugggling to pay their rent even after the re-open post pandemic shut down.

Under the proposal, the following is offered:

• the recovery leases would  last at least 10 years with limited annual rent increases
• landlords would be eligible for property-tax abatements
• commercial tenants restructuring their current lease, or those entering into a new lease for space left vacant for reasons other than eviction, would be eligible to enter into a recovery lease

City Officials have also left room in the bill for additional incentives and restrictions to be made as needed at a later date. This incentive may be the very thing small business owners need to help them keep their businesses open past the third quarter.

For more information, contact Michael Ceschini.