Transfer tax revenue has dipped more than $2B since 2007: report

TRD New York /
Jan.January 05, 2012 03:30 PM

Revenue from taxes on property sales in New York City has plummeted, to $982 million in 2010 from $3.3 billion in 2007, making budgeting extremely difficult, Bloomberg reported.

The city’s Independent Budget Office, a non-partisan entity, said the decline in sales volume has translated to a deficit for dependent agencies, such as the Metropolitan Transportation Authority. The MTA, a state agency, has raised its fares on subways, buses and commuter rail operations in recent years.

“The sale of commercial property, which includes rental apartment buildings with four or more units under the city’s property transfer tax rules, has been a key to the boom and bust in transfer-tax revenues,” Bloomberg noted, sourcing a report from IBO.

And there is little hope in sight for the city or the MTA, both of which have cut services and personnel due to the revenue dip. “Even if the economy enters into a vigorous recovery, it is unlikely that the market will support the levels of prices that were observed during the peak,” the report said. [Bloomberg]


Related Articles

arrow_forward_ios
From left: 1800 and 1815 Park Avenue, MTA's Second Avenue Subway plan, and 160 East 125th Street between 3rd and Lexington (Credit: Google Maps)

Second Ave subway’s next phase could impact Durst, Extell dev sites

Corey Johnson’s MTA reform plan targets controversial Scaffold Law

Corey Johnson’s MTA reform plan targets controversial Scaffold Law

MTA renews 50K sf at Forest City’s 1 Pierrepont Plaza in Brooklyn

MTA renews 50K sf at Forest City’s
1 Pierrepont Plaza in Brooklyn

The MTA is still spending millions to maintain its empty headquarters

The MTA is still spending millions to maintain its empty headquarters

De Blasio to Cuomo: You’ve got the money, now fix MTA and NYCHA

De Blasio to Cuomo: You’ve got the money, now fix MTA and NYCHA

From left: RFR Holding's Aby Rosen, Gov. Andrew Cuomo, RXR Realty's Scott Rechler. (Credit: TRD, Pat Arnow, Getty Images, Pixabay)

Cuomo made appointments to state boards. Then, in apparent defiance of his own executive order, he cashed their checks

To pay for the broken MTA, Cuomo wants to tax landlords near new subway projects

To pay for the broken MTA, Cuomo wants to tax landlords near new subway projects

Real estate owners should pay for transit project costs, MTA officials say

Real estate owners should pay for transit project costs, MTA officials say

arrow_forward_ios