This benefit is a reduction taken off the amount of rent subject to the Commercial Rent Tax.
Non-profit companies and businesses whose annual leases are under $200,000 do not pay Commercial Rent Tax (also known as an "Occupancy Tax") and are not eligible for the CRT Special Reduction.
Tenant and Lease Qualifications
Government Owned Buildings - Tenants may qualify for the CRT Special Reduction. To qualify, you must also apply for the Commercial Revitalization Program (CRP) but you do not have to meet CRP improvement and lease requirements if you are applying for the CRT Special Reduction only.
Non-Government Owned Building - Tenants must apply for the CRP tax abatement to receive the CRT Special Reduction.
Leases starting on or after July 1, 2005
Buildings south of Canal Street receiving a Certificate of Occupancy after 1975.
Leases, but not subleases, having a term of at least five years, beginning between July 1, 2005, and June 30, 2013.
The benefit period is three or five years.
- Year one: The reduction is equal to the base rent.
- Years two and three of 5-Year Benefit: whichever is less: the year one base rent or the base rent for the year in question.
- Year two of 3-Year Benefit or year four of 5-Year Benefit: Equal to 2/3 of whichever is less: the year one base rent or the base rent for the year in question.
- Last year: Equal to 1/3 of whichever is less: the year one base rent or the base rent for the year in question.
The special reduction is an optional incentive program that requires the tenant and the landlord to apply together. Both must apply for the special reduction benefit to be granted.
CRT Special Reduction Required Forms
- Send either a Certificate of Abatement from Property Tax or a Certificate of Eligibility for Commercial Rent Tax Benefits; and
- A Commercial Rent Tax Special Reduction Compliance Certification Form.
Forms & Reports