S. 2957 - Mom and Pop Rent Increase Exemption

• Creates a real property tax abatement program for eligible buildings in cities with populations of one million or more that enter into 10-year leases with small businesses (50 or fewer employees) and limit annual rent increases to 3 percent or less.

• Provides tax abatement on a sliding scale: full abatement base for years 1-5 of the benefit period, two-thirds for years 6-8, and one-third for years 9-10, with the abatement base calculated as the lesser of $2.50 per square foot or 50 percent of tax liability per square foot.

• Requires applicants to file applications within 60 days of lease commencement and submit annual certificates of continuing eligibility by July 1 each year, with abatements subject to revocation if tenants vacate, premises cease commercial use, or building taxes remain unpaid for more than one year.

• Makes abatement program effective for leases commencing between April 1, 2021 and March 31, 2039, with individual benefit periods lasting up to 10 years (120 months) from rent commencement.

• Imposes confidentiality requirements on department of finance and tax commission personnel regarding applicant information, with violations punishable by fines up to $1,000 and up to one year imprisonment, plus dismissal for government employees.