NYC property tax overhaul could generate $4B: report

Group claims extra money can be wrung from system -- without raising rates
March 10, 2014 09:45AM

Revamping property taxes could produce $4 billion in funds, according to business-supported watchdog group Citizens Budget Commission.

Mayor Bill de Blasio’s plan to increase income taxes to help fund after-school and pre-kindergarten programs is slated to raise $530 million. But Citizens Budget Commission said that the city’s take could be up to eight times that — if the mayor targets the wealthiest residents. Nearly 50 percent of all property value in the city is tied to owners of one- and multi-family homes who pay 15 percent of the $21 billion in yearly taxes, the commission told Bloomberg News.

“The city’s property tax is complicated and riddled with inequities,” Carol Kellermann of Citizens Budget Commission told Bloomberg News. “We can generate more revenue from this tax simply by making it more transparent and equitable, without having to raise rates.”

De Blasio’s spokesperson said the mayor is willing to look at changes in the property-tax system. [Bloomberg News]Mark Maurer