Real estate tax revenues to fall

Both the city and state are preparing for a big drop in real estate tax revenues. The city predicts a 39 percent fall in sales volume for commercial deals through 2009. The median price for those sales is predicted to drop by 32 percent. City revenue from property taxes this year is forecast at $1.5 billion, 14 percent lower than in 2007. The city predicts the mortgage recording tax will bring in $1.15 billion, a drop of about 27 percent. “It is obviously a trend that we are very concerned about,” said David Weprin, chairman of the City Council’s Finance Committee.