The report from the Real Estate Board of New York estimated that New York City and state collectively lost $1.6 billion in tax revenue in 2020 due to declines in real estate market activity
Property sales in New York City plunged 46 percent in 2020 from the prior year’s level, costing $1.6 billion in lost city and state tax revenue, according to an industry group.
The report on Friday from the Real Estate Board of New York said that property sales in the city totalled $47 billion last year, down nearly half from the 2019 sales volume of $86 billion.
The steep decline in real estate transactions came as residents fled the city in a mass exodus amid pandemic fears, lockdowns and soaring crime.
The report estimated that New York City and state collectively lost $1.6 billion in tax revenue in 2020 due to these significant declines in real estate market activity.
New York City tax revenue from real estate transactions totalled $1.9 billion in 2020, representing a 38 percent decline from 2019, while state tax revenue from such transactions totalled $785 million in 2020, a 32 percent drop.
The real estate industry generates more than half of New York City’s total annual tax revenue, while personal income tax accounts for just one-fifth of tax receipts.
Desperate to plug the state budget gap, Governor Andrew Cuomo has demanded a $15 billion federal bailout from President Joe Biden’s new administration.
In an ultimatum, Cuomo has already threatened to sue if Washington does not deliver the funding he is requesting.
The REBNY report is based on official data from the NYC Department of Finance’s Automated City Register Information System (ACRIS) and captures total sales volume, number of transactions and tax revenue.
Last month, the group, whose members include nearly every major landlord and developer in the city, proposed dramatic changes to zoning rules to convert Midtown office buildings into apartments, according to the New York Times.
The articles are for information purposes only and Invest for Property shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.
Invest for Property does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.
Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.