Bill > A07996

This bill, titled the "Neighborhood Small Business Rent Increase Exemption," proposes to create a tax abatement program for eligible small businesses in cities with a population of one million or more, aiming to encourage vibrant neighborhood business activity. The program allows cities to designate "abatement zones" where eligible non-residential or mixed-use buildings can receive a reduction in real property taxes. To qualify, landlords must enter into a ten-year lease with a tenant for eligible premises, which are defined as spaces used for retail purposes by a "small business" (defined as employing 50 or fewer people), and the lease must limit annual rent increases to no more than three percent. The tax abatement is calculated based on the building's assessed value and tax rate, with the benefit decreasing over a ten-year period. The bill outlines detailed eligibility requirements, application procedures, and enforcement mechanisms, including provisions for the revocation of abatements if certain conditions are not met, such as unpaid taxes or changes in the use of the premises. The Department of Finance in these large cities will administer the program, and strict confidentiality rules are in place for the information submitted.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A7996