The Real Deal New York

Here’s how much NYC property tax revenue jumped in the past 7 years

State Senate suggests changes to curb impact of federal tax law
January 23, 2018 09:05AM

John Flanagan and Gov. Andrew Cuomo

In the New York State Senate’s response to this year’s proposed executive budget, lawmakers once again suggested that New York City join the rest of the state in capping property tax increases at 2 percent.

The report cites that property tax revenue in the city has increased by $9.6 billion between fiscal years 2010 and 2017. By the end of fiscal year 2018, property tax revenue is expected to reach $25.8 billion — roughly 45 percent of the city’s overall tax revenue. In 2019, property tax revenue is projected to hit $27.7 billion, according to the report. The following year, it could reach $28.8 billion and then $29.9 billion in 2021.

In 2011, the state passed a law that capped property tax increases at 2 percent each year, but the city was exempt. The Senate suggests that the city adopt the cap in light of the new federal tax law, which eliminates federal income tax deductions for state and local taxes (SALT).

In his budget proposal, Gov. Andrew Cuomo suggests that counties discuss opportunities to invest in shared services and eliminate those that are redundant as a way to cut back on tax burdens. He also has proposed swapping state income for payroll taxes, though the specifics of that have not yet emerged. — Kathryn Brenzel