The Real Deal New York

Property sales set to contribute $2.1B to city’s tax coffers

December 19, 2013 06:40PM

The city’s revenues from transfer taxes — which it collects every time a property changes hands — is expected to jump 17.6 percent this year compared to the previous year, buoyed by rising assessments and a corresponding increase in taxes paid.

In fact, transfer taxes are projected to put nearly $2.1 billion in the Big Apple’s coffers by the end of the fiscal year, up sharply from the $981 million the city pulled in at its lowest point in 2010.

Altogether, real estate taxes will amount to almost one-third of the city’s total projected revenue in fiscal year 2014, which ends June 30, Crain’s reported, citing an Independent Budget Office report.

By the end of fiscal year 2015, property tax revenue is expected to grow even higher, hitting $20.6 billion — a 4.1 percent increase over this year, the IBO report said. A steady increase is also expected into 2016 and beyond, reaching $22.6 billion by 2017. [Crain’s]Julie Strickland