Supplemental Storefront Registry Deadline – August 15, 2024

As the August 15th deadline approaches, property owners in New York City need to ensure compliance with the Supplemental Storefront Registration requirement. This specific filing is crucial for owners of Tax Class Two and Four properties with ground-floor or second-floor commercial premises, commonly referred to as storefronts.

What is the Supplemental Storefront Registry?

The Supplemental Storefront Registry is an additional filing requirement under Local Law 157 of 2019, as amended in 2022. The law mandates that property owners report vacancies in their storefronts twice a year. The first report, due on August 15th, covers vacancies as of June 30th, and the second report, due on February 15th of the following year, covers vacancies as of December 31st.

This requirement specifically applies to Tax Class Two and Four properties. Tax Class Two properties are predominantly residential with four or more units, while Tax Class Four properties are commercial, meaning they are predominantly not residential. In both cases, the classification is based on the gross floor area of the property. Owners of designated Tax Class One properties, which are primarily residential with one to three units, are exempt from filing this supplemental report.

Why Is This Important?

Failure to file the required Supplemental Storefront Registration can result in penalties. Even if your property is not required to file an annual Real Property Income and Expense (RPIE) statement, you may still be subject to penalties if you fail to submit this supplemental registration.

Moreover, this filing is not just a bureaucratic requirement; it plays a crucial role in the city’s broader efforts to track and manage commercial vacancies, providing valuable data that can influence city planning and economic policies.

How to File

Filing the Supplemental Storefront Registration is straightforward but requires attention to detail:

1. Access the System: You will need an NYC.ID account to file. If you don’t have one, you can create it for free on the NYC Department of Finance website. Information (nyc.gov)
   
2. Enter Property Information: You’ll need to input your property’s borough, block, and lot (BBL) number to start the filing process. The system will then verify your parcel information.
3. Report Vacancies: You must report any storefronts that were vacant as of June 30, 2024. If none of your storefronts were vacant, you are not required to file this report.
4. Review and Submit: Before submission, review all entered information to ensure accuracy. Once satisfied, submit your filing. You will receive a confirmation email once the filing is complete.For a detailed step-by-step guide, you can refer to DOF’s Supplemental Storefront Registration User Guide for 2024.
   

   
   Key Points to Remember

   • Deadline: The deadline to file is August 15, 2024.
   • Exemptions: Designated Tax Class One properties are exempt from this filing.
   • Penalties: Non-compliance can result in penalties, similar to those for failing to file an RPIE statement.
   • Details Matter: Ensure that all information, especially concerning vacancies, is accurately reported.

   
   Final Thoughts

   As the deadline approaches, make sure you’ve taken the necessary steps to comply with the Supplemental Storefront Registration requirements. This filing is a legal obligation. For any further questions or to clarify details specific to your property, consult the Storefront Registry FAQs or contact the NYC Department of Finance directly.

   
   History of the Storefront Registry Law

   The Storefront Registry Law, officially known as Local Law 157 of 2019, was introduced and passed by the New York City Council as a response to the rising number of vacant storefronts across the city, particularly in retail corridors that are vital to neighborhood economies. The law was part of a broader initiative to gain more insight into the factors contributing to commercial vacancies and to help city agencies, policymakers, and the public better understand and address these trends.

   
   Why Was the Law Passed?

   1. Increasing Storefront Vacancies: The period leading up to the law’s passage saw a notable increase in vacant storefronts throughout New York City. This trend was concerning for local economies and the vitality of neighborhood commercial districts. Vacant storefronts were seen as indicators of declining economic health, reduced foot traffic, and less vibrant streetscapes, which could have negative impacts on surrounding businesses and the community at large.
   2. Need for Data-Driven Decision Making: There was a recognized need for more detailed and timely data on commercial vacancies to help city agencies and stakeholders understand the scope and causes of these vacancies. Without comprehensive data, it was challenging to develop effective policies or interventions to address the issue. Local Law 157 aimed to close this data gap by mandating that property owners report information about their storefronts, including vacancy status and other related details.
   3. Impact of E-Commerce and Changing Retail Landscapes: The rise of e-commerce and changing consumer preferences were also factors behind the increase in storefront vacancies. As more consumers shifted to online shopping, many brick-and-mortar stores struggled to compete, leading to higher vacancy rates. The law was an effort to document these changes and provide a clearer picture of how retail trends were affecting local businesses.

   
   Purpose of the Data Collected

   The data collected through the Storefront Registry is used for several key purposes:

   1. Tracking Vacancy Trends: The primary use of the data is to track vacancy trends over time and across different neighborhoods in New York City. This information helps identify areas with high vacancy rates, which may require targeted interventions or policy changes.
   2. Informing City Planning and Economic Policies: City agencies, including the Department of Small Business Services (SBS) and the Department of City Planning (DCP), use the data to inform city planning and economic development strategies. For example, identifying high-vacancy areas could lead to efforts to attract new businesses or provide support to existing ones.
   3. Public Access and Transparency: The data is made publicly available through an online searchable database, enhancing transparency and allowing researchers, journalists, and the public to analyze trends and advocate for changes. This openness helps hold property owners accountable and allows community members to understand how commercial vacancies are impacting their neighborhoods.
   4. Supporting Small Businesses: The data supports initiatives aimed at helping small businesses thrive by providing insights into where resources and support are most needed. By understanding vacancy patterns, the city can better allocate resources such as grants, business improvement programs, and other forms of assistance.
   5. Assessing the Impact of Regulations: The data also serves as a tool to assess the impact of existing and future regulations on commercial properties and small businesses. It helps policymakers understand the effectiveness of measures designed to reduce vacancies and support local economies.

   
   Amendments to the Law

   In 2022, Local Law 157 was amended by Local Law 95 to increase the frequency and timeliness of reporting. These amendments required property owners to submit supplemental registration statements twice a year and mandated the Department of Finance to release the collected data more promptly. This change was intended to provide a more up-to-date picture of the storefront vacancy situation, allowing for quicker responses to emerging trends.