Lower Manhattan Commercial Rent Tax Reduction

This benefit is a reduction taken off the amount of rent subject to the Commercial Rent Tax.

Non-profit companies and businesses whose annual leases are under $200,000 do not pay Commercial Rent Tax (also known as an "Occupancy Tax") and are not eligible for the CRT Special Reduction.

Enhanced Reduction for Leases that started between July 1, 2005 through June 30, 2013

• Tenant and Lease Qualifications

  • Lease, for premises in nonresidential or mixed use building south of Canal Street.

  • Lease must be for: a) premises in an eligible government owned building (see below); or b) premises in a non-government owned building which would meet eligibility requirements for the Commercial Revitalization Program (CRP).

  • Lease, but not a sublease, having a term of at least five years.

• Benefits

  • The benefit period is five years;

    • Year one: The reduction is equal to the base rent

    • Years two through five: whichever is less: the year one base rent or the base rent for the year in question.

      Note: the Enhanced Special Reduction Program was not extended for leases beginning after June 30, 2013. Until the Enhanced Reduction is extended, tenants are only entitled to the Special Reduction if they qualify for the Basic Reduction discussed below.