Supermarts plead for tax breakb
Manhattan brick-and-mortar supermarket owners facing more online competitors pleaded on Monday for Mayor de Blasio and the City Council to remove the dreaded commercial rent tax from their industry.
The tax, introduced in the 1960s, imposes a surcharge of 3.9 percent on rents of $250,000 or more on all businesses below 96th Street.
Officials said it adds $5 million a year in operating costs to the 132 supermarkets that pay it.
“You see a decrease in the amount of stores in Manhattan. It’s getting worse and worse every day,” said Steven Sloan, a vice president with the Morton Williams supermarket chain.
Manhattan Borough President Gale Brewer (right) urged immediate action.
“We can repeal it for supermarkets right now,” she said. “Eliminating this tax would make a huge, huge difference.”
One criticism of the bill is that it addresses only grocers’ needs and doesn’t include otherer businesses, like mom-and-pops and restaurants.
The mayor’s office said it supports tax relief, but said it mustt be handled care-carefully to avoid impactingng city services.
Another bill before the council would raise the threshold foror calculating the tax for all businesses from $250,000 to $500,000.