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Real estate crushes NYC operating budget

Sales of commercial and residential properties in NYC — everything from office buildings to hotels and individual condos — are down 45% this year through September, according to REBNY. This has resulted in $755 million less in city and state tax revenue compared with the first nine months of last year.

  • Be Smart: The lost revenue stems from transfer and mansion taxes that are levied on real estate trades. The tally doesn’t include taxes generated from mortgage recording, suggesting that the hit to public coffers is even higher, Bloomberg noted.
  • Why it matters: Last year, taxes from real estate sales generated $31.9 billion for the city’s operating budget, accounting for 53% of its total tax revenue. That’s more than double the next-closest contributor, personal income tax, at 21%. [Bloomberg]

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