Sharp declines in real estate activity have caused the city and state to lose $1.4 billion in taxes so far this year, according to REBNY. Overall this year, New York has seen $34.5 billion worth of commercial and residential sales, a 50% decline compared to last year that has sparked a 39% drop in tax revenue, Crain’s cited.
- Why it matters: Real estate is the largest driver of tax revenue for the city. The sector generated 53% of taxes for New York in the prior fiscal year, while personal income taxes came in a distant second place at 21%.
- Heard on the Street: REBNY’s President James Whelan: “The lost tax revenue is a clear sign the federal government needs to pass a new economic stimulus package.” [Crain’s]