NYC Budget Office Projects $1B Drop In Property Tax Revenue

New York City's Independent Budget Office projected that the city's property tax revenue will decline by $1 billion from 2021 to 2022 and that total market values will drop by 5.5%, the largest decline in 25 years.

In a report released Wednesday, the office said the significant decline in market values on the 2022 tentative roll is mainly because of projected decreases in incomes in Class 2 properties, mostly apartment buildings, and Class 4 properties, mostly commercial holdings. Valuations of both property classes are based on estimates of their income and expenses, the report said.

The report said the city's projected $1 billion property tax revenue decrease is because of the economic decline caused by the coronavirus pandemic. The projected 5.5% decrease in total market values is projected to be the most severe for Class 2 properties, with a drop of 8.3%, and Class 4 properties, with a drop of 17.3%, the report said.

--Editing by Vincent Sherry. 

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