MAYOR DE BLASIO, SPEAKER MARK-VIVERITO, COUNCIL MEMBER GARODNICK ANNOUNCE CHANGES TO COMMERCIAL RENT TAX TO PROVIDE RELIEF FOR SMALL BUSINESSES

Changes include adding an income threshold to ensure help reaches those who need it most

  Mayor Bill de Blasio, Speaker Melissa Mark-Viverito and Council Member Dan Garodnick today announced a new bill that would make changes to the Commercial Rent Tax (CRT) aimed at helping New York City’s small businesses succeed. Effective July 1, 2018, the threshold for Manhattan’s CRT for businesses with income up to $5 million will increase from $250,000 to $500,000 annual rent, with the benefit provided on a sliding scale for businesses with income between $5 million and $10 million or paying $500,000 to $550,000 in rent. In total, the move reduces taxes for 2,700 small businesses, including 1,800 that will no longer pay the tax at all. Under this move, the average business owner will receive between $11,300 and $13,000 in annual tax relief. This represents the first change to the CRT since 2001 and specifically targets Manhattan’s mom-and-pop shops and small businesses with 99 percent of the benefit going to businesses with only one or two taxable locations. The bill was voted on earlier in the day by the City Council and will be signed by the mayor in the coming weeks.

“Small businesses are the lifeblood of this city,” said Mayor de Blasio. “That’s why we designed the bill to ensure that they’re the ones we’re helping. The Commercial Rent Tax in its previous form is outdated and we’re proud to make the first changes in over a decade to bring relief to thousands of small businesses.”

“Manhattan’s small business owners have had to make too many sacrifices just to keep their livelihoods open. Intro 799-B would alleviate the financial burden of having to pay a rent tax on top of having to pay the rent itself for the borough’s businesses. Despite vast changes in the Manhattan real estate market and economic landscape over the last 15 years, the commercial rent tax has not been updated to reflect the realities on the ground. So this legislation reflects a long overdue step to provide relief to those businesses who have been struggling for far too long,” said Speaker Melissa Mark-Viverito. “I thank my colleague, Economic Development Chair Daniel Garodnick, for his leadership on this issue and advocating for our small businesses.”

“With storefront vacancies soaring and retail in crisis, the City Council is today taking a crucial step to support Manhattan’s small businesses,” said Council Member Dan Garodnick. “For the first time since 2001, we are reforming the unfair, commercial rent tax. By doing so, we are throwing a lifeline to businesses that make our neighborhoods special and provide jobs to New Yorkers from all five boroughs. This relief could not come soon enough and I join the 41 other co-sponsors of this legislation in thanking Mayor de Blasio and Speaker Mark-Viverito for their support.”

Currently, the CRT is paid by commercial tenants below 96th Street and above Murray Street in Manhattan who pay $250,000 or more in annual rent. The effective tax rate is 3.9 percent and has, for years, imposed an additional operating expense on small businesses, regardless of their income. For some small businesses, what they have owed in CRT has at times amounted to more than their net annual income, putting a serious strain on their finances. This change in tax policy is an effort to alleviate that strain and help New York City’s small businesses thrive. The total cost to the City is $36.8 million in Fiscal Year 2019.

EDITOR'S NOTE:

I left in the comment from Manhattan Councilman Garodnick, and left out the other comments from other Manhattan connected business affiliates or elected officials, since this is for Manhattan only and not the other four boroughs known as the 'Outer Boroughs'. Good going Mayor de Blasio and Speaker Mark-Vivirito. No wonder this city has gone downhill the last four years. At least one of you will be gone soon.

MAYOR DE BLASIO, SPEAKER MARK-VIVERITO, CHANCELLOR FARIÑA ANNOUNCE UNIVERSAL PHYSICAL EDUCATION INITIATIVE

  City will invest $385 million in Capital Funding to bring designated PE space to all schools citywide

  Mayor Bill de Blasio, Council Speaker Melissa Mark-Viverito, Assembly Member Cathy Nolan and Schools Chancellor Carmen Fariña today announced a Universal Physical Education (PE) initiative to provide all schools with a designated PE space by 2021. The initiative will focus on around 200 schools, out of a total of 1,629, that do not currently have a gymnasium. The first phase will focus on 76 schools that do not have any designated PE space and will cost approximately $385 million over the next four years in Capital funding, including $105.5 million in new Capital funding as part of the recently-announced Adopted Budget for Fiscal Year 2018. As part of the budget agreement, the City will also invest an additional $1.8 million for some of the schools to lease nearby PE space.

Over the next several months, the DOE and the School Construction Authority (SCA) will work with individual schools to explore a variety of options at each school to ensure all students have access to space for PE. These options will include constructing new gymnasiums, renovating schoolyards, converting or enhancing existing rooms into fitness areas, converting auditoriums into “gymatoriums”, or leasing PE space from community-based organizations.

Of the 76 schools across the City that do not currently have any designated PE space, the SCA has already identified 20 that have outdoor space that can accommodate a new gym addition, a standalone gym or a schoolyard renovation. DOE and the SCA are in the process of conducting space assessments at the remaining 56 schools.

“The lack of physical education classes in our schools has been a concern of mine for over 20 years,” said Mayor Bill de Blasio. “I could not be more proud to be dedicating resources to ensure that every school will have an adequate PE space by 2021. Incorporating physical activity into the day isn’t just the healthy thing for our young people, it is the law and one that was ignored for far too long.”

“Every student needs quality physical education to stay healthy and remain focused during the school day. Not only are we committing to providing all students with PE space, but we are also strengthening physical education curricula with more trained PE instructors and new educational resources. This is part of equity and excellence in all our schools, and setting students up for success,” said Schools Chancellor Carmen Fariña.

The Mayor and Chancellor announced Universal PE at P.S. 81 in Ridgewood Queens, where in 2018, the school will break ground on a new, stand-alone gymnasium. Starting next school year, the school will also have a new, full-time certified PE instructor. Additionally, starting this week, air conditioning installations will begin to address the nearly 80% of classrooms that lack units. This will be completed by the end of summer 2017 and all classes will have air conditioning for the 2017-18 school year.

Universal PE will build upon the administration’s PE Works initiative, an unprecedented, multi-year, $100 million investment launched in April 2016 that envisions PE as a foundational component of our schools, and seeks to revitalize this subject area for all students. PE Works began as a pilot in approximately 400 schools in the 2015-16 school year, and included jumpstart funding for 50 elementary schools without a certified PE teacher to hire and retain one.

The PE Works team is developing multi-year action plans in collaboration with school staff to address barriers to PE, including space constraints. Based on the action plans, the PE Works team will work with every district school to implement the instructional, operational and family engagement steps that schools can take to improve and sustain conditions for PE to thrive. PE Works staff is also developing a K-12 PE Scope and Sequence so that teachers, administrators, and parents have a shared understanding of the benchmarks of good PE instruction for students at all grades. By June 2019, with the help of nearly 500 new certified PE teachers hired for elementary schools that need one, all elementary schools are expected to meet State PE requirements.

Of the 76 schools included in the first phase of Universal PE, 30 are in Brooklyn, 13 are in the Bronx, 8 are in Manhattan, 16 are in Queens and 8 are in Staten Island. While all schools are required to provide PE, not all schools have PE space. Universal PE, coupled with PE Works, will ensure that all students have access to a PE space, resources and instructors who can provide them with the rigorous PE instruction they need and deserve. 

As part of the City’s larger effort to enhance learning environments for all students, Mayor de Blasio, Chancellor Fariña and the City Council also recently announced funding to provide every classroom in New York City with air conditioning. The City will dedicate a total of $28.75 million over the next five years to purchase and install air conditioning units in all classrooms by 2022, providing thousands of students with a more safe and comfortable learning environment.

“Being more active throughout the day has been shown to improve students’ concentration and performance in class. With the Universal PE Initiative, all students across the five boroughs will now have access to gyms – which will provide students with more opportunities to exercise and play,” said New York City Council Speaker Melissa Mark-Viverito. “I am proud to support this initiative, and look forward to continuing to work to promote healthy behaviors across New York City.”

MAYOR DE BLASIO, SPEAKER MARK-VIVERITO, AND CITY COUNCIL REACH EARLY AGREEMENT ON FY2018 BUDGET, MARKING EARLIEST HANDSHAKE SINCE 1992

Highlights include increased investments in our schools, youth, seniors and veterans

  Mayor Bill de Blasio, Council Speaker Melissa Mark-Viverito, Finance Chair Julissa Ferreras-Copeland and members of the City Council today announced an agreement for an on-time and balanced City budget for Fiscal Year 2018, marking the earliest handshake since 1992. The agreement on an approximately $85.2 billion budget builds on the Administration’s ambitious plan for investing in our public schools, youth workforce development, seniors and veterans, while protecting and strengthening the City’s long-term fiscal health.

The FY18 Adopted Budget accounts for $1.2 billion in General Reserve, $4.2 billion in Retiree Health Benefits Trust Fund and $250 million in the Capital Stabilization Reserve. This allows the City to retire debt in the face of potential federal cuts or an economic downturn. The Adopted Budget also recognizes $100 million in savings from the partial hiring freeze, as well as debt service savings.

“This budget is aimed at addressing the economic realities of everyday New Yorkers,” said Mayor de Blasio. “Life in this city is too hard for too many, but with this budget it is our goal to alleviate some of those pressures. We are adding 5,000 additional Summer Youth Employment slots, creating a property tax exemption for veterans how have fought for this country, and eliminating the waitlists for senior case management and home care. We’re doing this all while maintaining the fiscal responsibility raters and monitors have come to expect and adding to our rainy day reserves.”

Among a variety of initiatives, today’s agreement includes:

·   $105.53 million in capital funding and $1.8 million in expense to ensure Universal Physical Education by 2021.

·   $23 million to eliminate the Home Care and Case Management waitlists, create a new program to offer relief to caregivers, provide weekend meals to seniors utilizing Senior Centers or the Home Delivered Meals programs, and enhance rates paid to senior centers.

·    A Veterans Property Tax Exemption for any veteran who served during a war, saving an average of $443 per year, per person at a cost to the city of $25 million annually.

·    $20 million to provide 6,500 year-round jobs through the Work, Learn and Grow.

·    $9 million to expand the Summer Youth Employment Program from 65,000 to 70,000 slots.

·   $30 million in FY18 growing to $104 million in FY22 to provide enhanced resources and support to our nonprofit service providers.

·  $6.4 million to continue deployment of rapid-response “Fly Cars” in the Bronx, continue strategic placement of emergency vehicles in high-need locations, place EMS personnel at Bronx hospitals, and $17 million in capital to replace the existing EMS 17 facility.

·   $7.2 million – an increase of 15% from last year’s spending – for the Emergency Food Assistance Program to address the projected demand.

·   $2.1 million to expand Breakfast in Classrooms to an additional 303 buildings, bringing the total to 833.

·  $10.4 million to expand the Free School Lunch program in schools.

·   $110 million to assist with capital projects in libraries across the city.

Budget monitors have validated the judicious way in which this administration has protected the City’s fiscal health. As recently as February, all three major rating agencies affirmed the City’s strong, stable ratings.