Instructions For Form Cr-A - Commercial Rent Tax Annual Return printable pdf download

Instructions for Form CR-A

Finance

nyc.gov/finance

Commercial Rent Tax Annual Return

Applicable for the tax period June 1, 2009 to May 31, 2010, ONLY

HIGHLIGHTS OF NEW LEGISLATION (Ch. 2 of the Laws of 2005, Pt. A.)

Effective August 30, 2005, tenants located in the “World Trade Center Area”, as defined are exempt from the

tax. (See Page 3 - Exemptions: #5) The World Trade Center is defined as: the area in the borough of Man-

hattan bounded by Church Street on the east starting at the intersection of Liberty Street and Church Street; run-

ning northerly along the center line of Church Street to the intersection of Church Street and Vesey Street;

running westerly along the center line of Vesey Street to the intersection of Vesey Street and West Broadway;

running northerly along the center line of West Broadway to the intersection of West Broadway and Barclay

Street; running westerly along the center line of Barclay Street to the intersection of Barclay Street and Wash-

ington Street; running southerly along the center line of Washington Street to the intersection of Washington

Street and Vesey Street; running westerly along the center line of Vesey Street to the intersection of Vesey Street

and West Street; running southerly along the center line of West Street to the intersection of West Street and Lib-

erty Street; running easterly along the center line of Liberty Street to the intersection of Liberty Street and Wash-

ington Street; running southerly along the center line of Washington Street to the intersection of Washington

Street and Albany Street; running easterly along the center line of Albany Street to the intersection of Albany

Street and Greenwich Street; running northerly along the center line of Greenwich Street to Liberty Street; and

running easterly along the center line of Liberty Street to the intersection of Liberty Street and Church Street.

Effective August 30, 2005, the Commercial Rent Tax reduction program is expanded for those taxpayers who

are eligible for the Commercial Revitalization Program benefits to include more buildings and to provide a

greater base rent reduction as follows:

a. The new law expands the program to include buildings south of Canal Street that received their certificate

of occupancy after 1975.

b. The new law provides for a base rent reduction for the first five years of the lease equal to the lesser of the

first year’s rent or 100% of the rent paid for the period.

c. This expansion is available for leases, but not subleases, having a term of at least five years beginning be-

tween 7/1/2005 and 6/30/2013.

d. No base rent reduction is allowed under this program for tax periods beginning after 3/31/2013. The new

law did not change the expiration date.

e. For purposes of applying such special reduction, the base rent for the base year shall, where necessary to

determine the amount of the special reduction allowable with respect to any number of months falling

within a tax period, be prorated by dividing the base rent for the base year by twelve and multiplying the

result by such number of months.

As of December 1, 2005, the new law will also exempt the rent paid for premises used for retail sales pur-

poses (See Page 3 - Exemptions: #6) where such premises are located in the Commercial Revitalization Pro-

gram abatement zone, which is the area in the borough of Manhattan bounded by Murray Street on the North

starting at the intersection of West Street and Murray Street; running easterly along the center line of Mur-

ray Street connecting through City Hall Park with the center line of Frankfort Street and running easterly along

the center lines of Frankfort and Dover Streets to the intersection of Dover Street and South Street; running

southerly along the center line of South Street to Peter Minuit Plaza; connecting through Peter Minuit Plaza

to the center line of State Street and running northwesterly along the center line of State Street to the inter-

section of State Street and Battery Place; running westerly along the center line of Battery Place to the in-

tersection of Battery Place and West Street; and running northerly along the center line of West Street to the

intersection of West Street and Murray Street. Any tax lot partly located inside this area is deemed to be en-

tirely located inside the area.

Instructions For Form Cr-A - Commercial Rent Tax Annual Return

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