Commercial Rent Tax

The Commercial Rent Tax is a tax for businesses in Manhattan, south of the center line of 96th Street. You must pay this tax if your rent is at least $250,000 each year.

Exemptions

Some exemptions apply, such as:

• Short rental periods
• Residential subtenants
• Use for theatrical productions
• Not-for-profit status

Tax credits

If your annual rent is between $250,000 and $300,000, you may get a credit to reduce the tax.

Definition of tenant

A tenant is anyone who pays rent. This includes lessees, sub-lessees, licensees or concessionaires. Tenant-shareholders in co-ops are also included.

Additional tax obligations

You must also pay the tax if you:

• Use space in buildings owned by your spouse or parents
• Use space in buildings owned with others
• Use space in buildings owned by a corporation where you are an officer or shareholder
• Are a corporation using space in a building owned by a subsidiary or parent corporation
• Are a corporation using space in a building owned by an officer or stockholder of the corporation

If your annual rent is between $250,000 and $300,000, you may get a credit to reduce the tax.

Definition of tenant

A tenant is anyone who pays rent. This includes lessees, sub-lessees, licensees or concessionaires. Tenant-shareholders in co-ops are also included.

Additional tax obligations

You must also pay the tax if you:

• Use space in buildings owned by your spouse or parents
• Use space in buildings owned with others
• Use space in buildings owned by a corporation where you are an officer or shareholder
• Are a corporation using space in a building owned by a subsidiary or parent corporation
• Are a corporation using space in a building owned by an officer or stockholder of the corporation