I wanted to alert you to an interesting issue that has surfaced.
As you know, Lehman Brothers, Deloitte, and perhaps other companies displaced
by the WTC attacks have taken large blocks of hotel rooms as temporary office
space. The basic question is whether these occupancies are subject to (a)
the City and State sales and hotel taxes (about 18%) and/or (b) the
commercial rent tax (3.9%).
Although part of the question may be mooted if companies qualify for the
hotel tax's "permanent resident" exemption (after 180 days of occupancy), it
remains a serious issue that will draw the attention of REBNY, the Hotel
Association and others. Our preliminary analysis indicates that the hotel
and sales taxes apply, but not the CRT. This may not be the equitable
result. We are researching our interpretive and local law options, and will
consult with the State as well. We will offer a recommendation as soon as
possible.
Visit the NYC Department of Finance online at www.nyc.gov/finance
NYC-WTC 000137083
OCR can misread numbers and units. Confirm readings against the page image before using them.
NYC-WTC_000137083Source: NYC Law Department, mirrored locally
Comprehensive FAQ addressing downtown building access, reopening areas, property manager contact procedures, and building damage status in lower Manhattan.