New York: New York City Tax Appeals Tribunal Rules Billboard Advertising Not Subject to Commercial Rent Tax

The New York City Tax Appeals Tribunal ruled that payments by Broadway production companies for billboard advertising do not constitute “rent” subject to the New York City Commercial Rent Tax (CRT) because the taxpayers did not have access to or control over the billboard space. The dispute concerned whether the taxpayer’s contracts with third parties to place advertising on billboards in Manhattan constituted a taxable use of premises subject to the Commercial Rent Tax. The Tribunal determined that the arrangements were characterized as advertising services rather than leases or licenses of taxable premises. This determination resulted in the cancellation of ...