NYC Loses $755 Million in Tax Revenue Due to Lack of Real Estate Deals

By:
Chris Gaetano
Published Date:
Oct 16, 2020
Like many commercial activities in New York city during this time of tumult and strife, real estate deals have taken a nosedive, which has resulted in the city losing out on $755 million worth of tax revenue compared to last year, according to Crain's New York Business. Sales of commercial and residential properties in the city, whether office building or condo tower, have fallen by 45 percent compared to last year, and since the city taxes such transactions, this has meant tax revenue has fallen as well. Such taxes represent a major part of the city budget, making up 53 percent of total revenue last year, with personal income tax, the number two source, making up just 21 percent.

Crain's noted that the tax revenue hit might be even larger than $755 million, as it does not include taxes from mortgage recording.

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