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New York State & Local Tax Update: July 2018

Posted 6:00 PM by

Businesses subject to New York City’s Commercial Rent Tax (CRT) will now be able to claim the new CRT credit on their June 1, 2018–May 31, 2019 tax return.

Old Law, New Law, Revised Law

Prior law, enacted in December 2017, created the CRT credit for small businesses to be used to offset the CRT for tax years beginning on or after July 1, 2018. As originally enacted, the CRT credit appeared to be unavailable to taxpayers until the June 1, 2019–May 31, 2020 tax period.

In June 2018, New York City Mayor Bill de Blasio signed legislation which amended the effective date of the CRT credit for small businesses to tax years beginning on or after June 1, 2018. This was done to align the effective date of the credit with the CRT tax year rather than the city’s fiscal year, and to permit the credit to be claimed during the tax year that began June 1, 2018.

Commercial rent taxpayers are still required to file quarterly returns, the first of which is due Sept. 20, 2018. The New York City Department of Finance is expected to provide further guidance on how the CTR credit will be applied on a quarterly basis.

About the Author
Donna Niesen is a partner in Katz, Sapper & Miller’s State and Local Tax Group. Donna helps keep clients up-to-date on the multitude of tax rules and requirements in all 50 states. She guides them in the right direction as they address the complex issues that emerge on both the state and local levels. Connect with her on LinkedIn.


About the Author
Stephen Royster is a partner in Katz, Sapper & Miller’s State and Local Tax Group. Stephen helps clients navigate the multistate tax landscape by advising them on tax law changes in every state, ensuring they are efficiently structured, and ultimately protecting their bottom line. Connect with him on LinkedIn.

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