And the importance of property taxes is unlikely to change in the future. Industry tax revenue is expected to increase by $1 billion in fiscal year 2023, which runs from July 2022 to June 2023. This should help offset expected declines in personal income tax revenue. and corporation tax, the report says. Although real estate transfer taxes are expected to decline that year, property assessments will likely rise, according to REBNY.
“This report is another reminder that the health of the real estate sector and the city’s finances and economy are inextricably linked,” REBNY Chairman James Whelan said in a statement.
Real estate-related taxes are expected to account for more than $35 billion in the city’s enacted fiscal year 2023 budget, compared to $30 billion from all other tax sources, according to REBNY. They are expected to be $34.2 billion for fiscal year 2022.
The city estimated in its preliminary budget earlier this year that commercial buildings had retained approximately 92% of their values despite the pandemic and were worth approximately $301 billion in total for fiscal years 2022/2023. The Ministry of Finance estimated the total value of all properties in the city at approximately $1.4 trillion for fiscal 2023, up 8.2% from the prior fiscal year.