Real estate taxes drive up city revenue

Tax revenues in New York City’s fiscal budget are predicted to increase beyond previous projections, to $40 billion in 2011 from $39 billion, and to $41.9 billion in 2012, from $40.8 billion, producing an additional $2.1 billion in revenues, according to the Fiscal Year 2012 preliminary budget and an updated four-year financial plan presented today. The increase in revenues was driven by economically sensitive tax revenues, which include real estate taxes, personal income, sales and business, Mayor Michael Bloomberg said. Factors contributing to the continued rebound in city tax revenue include New York City’s commercial real estate market, which remained the strongest in the U.S., Bloomberg noted. He outlined a proposal to close a $4.58 billion deficit with no tax increases for New Yorkers and without additional cuts in city-funded services. “By tightening our own belt for years and growing our economy, we’ve kept our house in order and closed our own budget gap without further cuts,” he said. “Our sound management will help avoid the worst impacts of state cuts, but we can’t compensate for the full loss in state funding… If the state does not come through, layoffs and service cuts will be more severe.” TRD