New York City – Retailers subject to commercial rent tax

Retailers should be aware of an often-missed tax on the occupancy of commercial premises in Manhattan, south of 96th street, imposed at the effective rate of 3.9% of base rent. The City imposes a maximum 47.5% penalty on a taxpayer’s failure to file and pay the tax, along with other penalties.  With increased audit activity, retail tenants not filing and paying the commercial rent tax should consider their options for becoming compliant.

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