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

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
Photo Illustration of Douglas Durst, chairman of the Durst Organization (Getty)
Durst accuses MTA of stalling East Harlem development
Durst accuses MTA of stalling East Harlem development
Sen. Charles Schumer, President Joe Biden and Mayor-elect Eric Adams with the BQE (Getty, iStock)
Goodbye BQE? How infrastructure bill boosts real estate
Goodbye BQE? How infrastructure bill boosts real estate
A photo illustration of Gov. Andrew Cuomo and Mayor Bill de Blasio (Getty)
Congress came through. Why is real estate not satisfied?
Congress came through. Why is real estate not satisfied?
Dalton Gomez and Ariana Grande (Compass, Getty, Instagram/ArianaGrande)
Ariana Grande and Compass’ Dalton Gomez engaged
Ariana Grande and Compass’ Dalton Gomez engaged
Senate Majority Leader Mitch McConnell and Speaker of the House Nancy Pelosi (Getty)
Stimulus to extend eviction moratorium, provide $25B in rent relief
Stimulus to extend eviction moratorium, provide $25B in rent relief
(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
arrow_forward_ios

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

Loading...