Real estate tax revenues did not decline with the city’s economy last year as the pandemic was preceded by an assessment. New York will not be so lucky this year.
Suffering from hotels, office buildings and other properties will cause property taxes to fall by $ 2.5 billion next year, the biggest drop in three decades, the New York Times reported. The market value of these commercial properties fell by 15.8 percent.
“This is only a total economic dislocation for some industries,” Mayor Bill de Blasio said on Thursday. “We’ve never seen anything like what happened in the hotel industry.” We have never seen Midtown in the situation it is in now. “
According to New York Post estimates, officials estimate that the pandemic cost the city $ 10.5 billion in tax revenue.
The city is receiving $ 1 billion more in income tax than expected, thanks in part to a huge Wall Street rally last year, and is also cutting some spending. In the coming years, however, it must overcome annual deficits of around $ 4 billion.
An unexpected announcement by the Federal Emergency Management Agency, announced on Thursday afternoon, will help. Senator Charles Schumer, the upcoming Senate leader, said newly elected President Joe Biden has agreed to reimburse the remaining 25 percent of the $ 8 billion New York spent on Covid’s response last year. That will bring about $ 1 billion to the city and state.
FEMA has already covered the usual 75 percent of disaster spending, but Biden will grant an exemption to cover the remaining costs, Schumer said.