REBNY Sees “Alarming” Decline in Transaction Tax Revenues
Tax revenue generated from investment and residential sales in New York City and New York State decreased by 48% from April 2019 to April 2020, and by 64% from March 2020 to April 2020, said the Real Estate Board of New York. These decreases represent a nearly $72-million loss in tax revenue for the city and state year-over-year, and a $139-million decrease from month to month.
“This dramatic loss in tax revenue is alarming,” said REBNY president James Whelan. “The real estate sector is the city’s economic engine. The pandemic has caused that engine to stall and we should expect such alarming trends to carry through May and June in the best-case scenario.”
REBNY created a new Monthly Investment and Residential Sales Report to track and quantify the impact of the Coronavirus (COVID-19) crisis on the city, and the state’s ability to generate taxes needed for essential government services.
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