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
(Getty)

MTA proposes percentage-based rent payments for Grand Central retailers

MTA proposes percentage-based rent payments for Grand Central retailers
TRD's Erik Engquist and MTA Chief Development Officer Janno Lieber 

MTA development chief: Capital budget will be “cannibalized” without federal aid

MTA development chief: Capital budget will be “cannibalized” without federal aid
Related chairman Steve Ross and 35 Hudson Yards (Photos via Getty, SOM, MTA)

Hudson Yards pad sells for $7M; cash-strapped MTA gets a cut

Hudson Yards pad sells for $7M; cash-strapped MTA gets a cut
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

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

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

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

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

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

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...