Commercial Rent Tax (CRT) Special Reduction

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Commercial Rent Tax (CRT) Special 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, 2027

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.

Basic Reduction For Leases Which Do Not Qualify for Enhanced Reduction

Tenant and Lease Qualifications

Lease in premises in nonresidential or mixed use building completed before 1975.

Leased premises in building located in the abatement zone generally defined as in the area of Manhattan bounded by Murray Street and Frankfort Street on the north and South Street, Battery Place and West Street on the east, south and west, respectively.

Lease must be for a) premises in an eligible government owned building (see below) or b) premises in a non-government-owned building which meets eligibility requirements for CRP.

Lease has term of at least three years.

Benefits

The benefit period is three or five years;

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

Years two and three of 5-Year Benefit: whichever is less: the year one base rent or the base rent for the year in question.

Year two of 3-Year Benefit or year four of 5-Year Benefit: Equal to 2/3 of whichever is less: the year one base rent or the base rent for the year in question.

Last year: Equal to 1/3 of whichever is less: the year one base rent or the base rent for the year in question.

Special Reduction

The Special Reduction is an optional incentive program that requires the tenant and the landlord to apply together. Both must apply for the special reduction benefit to be granted.

Application and Additional Information

All tenants must apply for the Commercial Revitalization Program (CRP) even if they are applying for the CRT Special Reduction only.

Government Owned Buildings - Tenants do not have to meet CRP improvement and related lease requirements to obtain the CRT Special Reduction.

Non-Government Owned Building - To receive the CRT Special Reduction, Tenants must either: a) apply for and receive the CRP tax abatement; or b) for the Enhanced Special Reduction only: meet the CRP improvement and related lease requirements in a building that is not eligible for CRP.

CRT Special Reduction Required Forms

Send either a Certificate of Abatement from Property Tax; or

Certificate of Continuing Eligibility for Commercial Revitalization/Expansion Abatement and Commercial Rent Tax Special Reduction form.

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The Department of Finance has made the data for all NYC properties available on the NYC Open Data portal for download. Visit the Open Data page for more information.

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