Rent Tax Harms Small Biz, Local Pols Say

By RAYCHELLE L. BALENTIEN

Councilman Daniel Garodnick and others urged Mayor de Blasio to help small businesses grow by supporting a  bill that would increase the ceiling for imposing the commercial rent tax on businesses below 96^th St., in a press conference Thursday in the Flatiron area.

“Mr. Mayor, you cannot forget our small businesses!” Garodnick yelled to the crowd.

The tax is  levied on businesses situated between Chambers and 96th streets who pay at least $250,000 annually in rent.  Garodnick’s plan would double that  to $500,000, to “throw a lifeline” to small businesses currently subjected to the tax, which is 15 percent of their annual rent, he said.  He claims the legislation would “bring relief to over 3,400 businesses that pay the tax, while only impacting six percent of the revenue it brings in.”

The tax that was originally imposed in 1963 hasn’t been adjusted since 2001, and with rents steadily rising, Manhattan Borough President, Gale Brewer said she wanted “to do away with the Commercial Rent Tax altogether…”, and portrayed the levy as the double tax on small businesses that exists only in New York City and Florida.

Natasha Amott, owner of Whisk, a culinary store on Broadway and 23^rd St., where the press conference was held, called the tax “antiquated and discriminatory,” and claimed the supporters of the bill “need to educate the mayor”, as he wasn’t fully aware of its “chokehold” on small businesses when asked about them at his budget hearing.  She requested that the change be included in the final budget.

Other small business owners from the neighborhood attended, as well as several of the 35 council members who support the bill, including Margaret Chin, and co-sponsor of the bill, Helen Rosenthal, who added that the “majority of the money that comes from the CRT is not that of Small Business Owners,” and is a “serious burden” for businesses who employ New Yorkers from all boroughs with quality jobs.

“New Yorkers are losing jobs when these businesses are forced to close down,” said Chin, who said she knows of owners who closed their business directly due to the tax.

“New York City is stepping on the neck of our small businesses,” and Manhattan is now “overwhelmed by banks, chain drug stores, and vacant store fronts because small businesses can’t keep up with the financial burden.”, said Garodnick.  With reform 40 percent of businesses “will have more money to expand, hire, and keep their doors open.”

Representatives of the mayor could not be reached for comment.

Photo of Councilman Garodnick at podium by Raychelle L. Balentien