New York 2025-2026 Regular Session

New York Senate Bill S01451

Introduced
1/10/25  
Refer
1/10/25  
Report Pass
2/25/25  
Refer
1/7/26  

Caption

Relates to creating the Neighborhood Small Business Rent Increase Exemption; provides a tax abatement for limiting rent increases on small businesses in a city of one million or more persons.

Impact

If enacted, S01451 will amend the real property tax law to facilitate the establishment of 'abatement zones' in larger cities. These zones will be specifically designed for small businesses that meet defined eligibility requirements. The tax abatement will be allocated for a decade but is structured to decrease in value over the years. The abatement is intended to offset some of the negative impacts of rent increases, which can threaten the stability and viability of small businesses, particularly in high-rent urban areas.

Summary

Bill S01451, also known as the Neighborhood Small Business Rent Increase Exemption, aims to provide a tax abatement to small businesses located in cities with a population of over one million. The bill is primarily focused on assisting neighborhood small businesses by limiting the amount landlords can increase rent for commercial tenants. By mandating that landlords enter into a ten-year lease agreement with renewal clauses limiting annual rent increases to three percent, the legislation seeks to create stability for small businesses and promote long-term economic development.

Contention

However, the bill is not without contention. Some critics express concerns regarding its feasibility and potential for abuse. There are worries about landlords manipulating lease terms or evading restrictions on rent increases. Additionally, ensuring compliance with the abatement program and monitoring landlords' adherence to the requirements outlined in the bill may present administrative challenges. Critics also argue that while the bill aims to support small businesses, it might inadvertently create a fiscal burden on the municipal tax base due to the loss of potential tax revenue.

Companion Bills

NY A07996

Same As Relates to creating the Neighborhood Small Business Rent Increase Exemption; provides a tax abatement for limiting rent increases on small businesses in a city of one million or more persons.

Previously Filed As

NY A07996

Relates to creating the Neighborhood Small Business Rent Increase Exemption; provides a tax abatement for limiting rent increases on small businesses in a city of one million or more persons.

NY S01091

Establishes a rent increase exemption for certain nonprofit organizations; provides a tax abatement for limiting rent increases on nonprofit organizations in a city of one million or more persons.

NY S07685

Relates to increasing the amount of the childcare center tax abatement for certain properties in a city having a population of one million or more for abatements taken in a tax year commencing on or after July first, two thousand twenty-five; provides that no such childcare center tax abatement shall be authorized for any tax year commencing on or after July first, two thousand thirty-two; extends the deadline for application for such childcare center tax abatement to March fifteenth, two thousand twenty-seven.

NY SB767

Property Tax - Credit for Commercial Buildings Rented to Small Businesses

NY A08028

Relates to increasing the amount of the childcare center tax abatement for certain properties in a city having a population of one million or more for abatements taken in a tax year commencing on or after July first, two thousand twenty-five; provides that no such childcare center tax abatement shall be authorized for any tax year commencing on or after July first, two thousand thirty-two; extends the deadline for application for such childcare center tax abatement to March fifteenth, two thousand twenty-seven.

NY HB840

Property Tax - Credit for Commercial Buildings Rented to Small Businesses

NY A07588

Enacts the "New York small business growth and support act"; authorizes certain tax exemptions for newly established small businesses during their first three years of operations.

NY S09959

Provides tax abatements for building owners in a city having a population of one million or more who complete exterior repairs to covered buildings.

NY A05491

Requires contractors receiving public funds to pay amounts owed to small businesses and minority-owned business enterprises within 10 days of receipt of an undisputed invoice generated by a small business, minority-owned business enterprise or vendor management service and managed service provider on behalf of the small business or minority-owned business enterprise.

NY S02284

Requires contractors receiving public funds to pay amounts owed to small businesses and minority-owned business enterprises within 10 days of receipt of an undisputed invoice generated by a small business, minority-owned business enterprise or vendor management service and managed service provider on behalf of the small business or minority-owned business enterprise.

Similar Bills

No similar bills found.