Tag small business

Chelsea Now: Rent Tax Reform Would Exempt Affordable Supermarkets

By Jackson Chen, 3/1/17

Faced with a rent increase from $32,000 a month to more than $100,000, Associated Supermarket closed its doors after 27 years on W. 14 St. and Eighth Ave. This March 2016 rally drew dozens of loyal customers as well as Councilmember Corey Johnson (in tie), with State Assemblymember Richard Gottfried (at right) and Public Advocate Letitia James (at left). Chelsea Now file photo by Yannic Rack.

Faced with a rent increase from $32,000 a month to more than $100,000, Associated Supermarket closed its doors after 27 years on W. 14 St. and Eighth Ave. This March 2016 rally drew dozens of loyal customers as well as Councilmember Corey Johnson (in tie), with State Assemblymember Richard Gottfried (at right) and Public Advocate Letitia James (at left). Chelsea Now file photo by Yannic Rack.

BY JACKSON CHEN | City Councilmembers across Manhattan are calling for reform of a decades-old commercial rent tax they say is burdening many local businesses into extinction.

The commercial rent tax (CRT) was created in 1963 as a revenue generator that charges businesses paying more than $250,000 in annual rent a 3.9 percent levy. In the ’90s, the CRT was restricted to Manhattan businesses below 96th St., followed by another amendment that exempted part of Lower Manhattan after 9/11.