New York’s business landscape faces a growing threat: organized retail theft. This issue not only impacts the profitability of businesses but also undermines the sense of security for both employees and customers. In response to this concern, Governor Hochul has proposed concrete measures to address this crisis and protect retail merchants.
New measures to deter theft
Hochul’s Executive Budget for 2025 includes three proposals aimed at addressing theft in retail stores more effectively:
1. Increase in penalties for assault: One of the key proposals is to increase penalties for assaults on retail workers. If approved, this measure would elevate assault on a retail worker to a Class D felony, equating their legal protection with that of first responders. This would not only deter criminals but also offer greater protection to those working in the retail sector. According to Section 120.05 of New York’s Penal Law, individuals convicted of second-degree assault could face a sentence ranging from two to seven years in a state prison.
2. Prohibition of promoting the sale of stolen goods: Another proposal seeks to prohibit the promotion of the sale of stolen goods, establishing a Class A misdemeanor for those who facilitate such activity. This measure would not only penalize those who profit from organized theft but also cut off one of the main incentives for committing such crimes.
3. Establishment of commercial security tax credit: The third proposal aims to support retailers affected by theft by introducing a refundable commercial security tax credit program. This program would provide a tax credit of up to $3,000 per retail establishment in the state of New York to companies with 100 employees or fewer that invest more than $12,000 in security measures. This would not only help mitigate costs associated with theft prevention but also incentivize more businesses to take proactive steps to protect themselves. Eligible measures include security personnel, cameras, perimeter lighting, locking systems, alarm systems, access control, or other anti-theft devices.
Benefits for Retail Businesses
If these proposals are incorporated into the finalized FY 2025 Executive Budget, they would take effect 180 days after enactment, marking a significant step toward improving the safety and protection of retail workers.
For our clients who own retail businesses in New York, these measures represent a ray of hope amidst growing concerns about organized theft. By increasing penalties for assault, prohibiting the promotion of the sale of stolen goods, and providing tax incentives to improve security, the state government is taking concrete steps to protect merchants.
At a time when retail businesses face unprecedented challenges, the measures proposed by Governor Hochul represent a significant step toward protecting the retail industry. By addressing both the symptoms and causes of organized theft, these proposals could mark a new chapter in the fight against retail crime in New York.
