S. 2298 Summary

• Creates a real property tax abatement program for small businesses (50 or fewer employees) occupying non-residential or mixed-use buildings in cities with populations of one million or more.

• Requires landlords to enter into 10-year leases with renewal clauses limiting annual rent increases to no more than 3 percent to qualify for the abatement.

• Provides graduated tax abatement based on tenant's percentage share of building space: full abatement for years 1-5, two-thirds abatement for years 6-8, and one-third abatement for years 9-10.

• Establishes application period from April 1, 2019 through March 31, 2029, with applications due within 60 days of lease commencement and annual eligibility certifications required.

• Requires landlords to notify the Department of Finance within 30 days of tenant vacancy or reduced commercial use, with abatement revocation and retroactive tax payment triggered by tenant departure, non-occupancy, or unpaid property taxes exceeding one year.