As the New York City real estate market continues to hit record highs, the cash-strapped Metropolitan Transportation Authority is seeing revenues from real estate taxes that far exceed the numbers in its budget.
The Authority has received 40 percent more in real estate-related tax revenues this year than what it budgeted for — a total of $732.4 million, according to a report presented to the agency’s board on Monday.
However, the extra $211.8 million is still paltry compared to the MTA’s major problem — its $14 billion capital plan deficit, Crain’s reported.
The MTA benefits from two types of real estate taxes — a mortgage recording tax, which is up 11.3 percent over the agency’s allotment this year, and an urban tax (leveled on commercial and apartment building transactions), which is up 56.4 percent over the budgeted amount.
At the meeting, some board members called to use the money to relieve overcrowding with increased routes, while some warned against using the funds to restore eliminated routes, since a decline in the real estate market could present a problem. [Crain’s] — Tess Hofmann