Reduces certain commercial rent taxes for premises occupied by certain retail and food services businesses located in the borough of Manhattan south of the center line of ninety-sixth street

2025 Regular Session Introduced by Erik Bottcher and 1 co-sponsor

The bill cuts base rent for taxable premises in Manhattan south of 96th Street, offering up to 100% relief for small tenants and 15–35% reductions for others.

REFERRED TO CITIES 1

Summary of Bill S 10300 (2025-2026) – New York City Commercial Rent Tax Reduction for Manhattan South of 96th Street

Purpose and intent

The bill amends the New York City Administrative Code to reduce base rent for taxable premises located in Manhattan south of the center line of 96th Street.

Targeted at supporting certain retail and food service businesses by lowering their rent burden.

Key provisions and changes

Location affected: Taxable premises in Manhattan south of the center line of 96th Street.

Rent reduction schedule (applies after other exemptions/deductions):

March 1, 1996 – May 31, 1996: 15% reduction.
June 1, 1996 – August 31, 1998: 25% reduction.
September 1, 1998 and thereafter: 35% reduction.

Additional provision for small tenants:

If a taxable premises is occupied by a retail business or a food services business with an annualized base rent of less than $1,000,000, the base rent shall be reduced by 100% (i.e., fully exempt from base rent for eligible periods).

Order of application: Reductions apply after all other exemptions and deductions authorized by the chapter have been taken.

Administrative: The bill amends Paragraph 2 of subdivision h of §11-704 to implement these reductions.

Entities and impacts

Affected entities: Retail businesses and food service businesses occupying taxable premises within the defined Manhattan area.

Financial impact: Large potential rent relief, particularly for smaller tenants (annualized base rent < $1 million) who would receive full rent relief. Larger tenants would receive substantial, but partial, reductions (15% to 35% over time).

Timing and effective date

Effective date: July 1 of the year following enactment (i.e., July 1 of the year after the bill becomes law).

Procedural notes

Introduced in the New York State Senate on May 12, 2026.

Referred to the Committee on Cities.

Sponsored by Sen. Bottcher and co-sponsored by Sen. Scarcella-Spanton (and additional co-sponsor listed).

Considerations for readers

The reductions are cumulative with other exemptions/deductions but apply after those are accounted for.

The policy is geographically targeted to lower Manhattan south of 96th Street, focusing on supporting retail and food service sectors.

The bill codifies long-standing or retroactive-sounding reductions (dating back to 1996) into current law for affected premises.