NYC-WTC_000195490

NYC 9/11 Public Portal Document

Property tax collections are forecast to grow 4.4 percent in 2001 after an increase of 2.5 percent in 2000. The levy in 2001 is up 4.2 percent, compared to 3.4 percent growth last year and accounts for most of the increase in property tax collections seen this year, or $356 million. Also boosting collections in 2001 is an increase in lien sale proceeds of $122 million. Part of these increases were offset by increases in tax expenditures, particularly the STAR program which increased $30 million, and an iiicrease in refunds of $26 million.

The non-property taxes are forecast to decline 6.7 percent in 2002 due to the economic weakness forecast for the year, an increase in TFA retention of $75 million and the annualization of tax reductions Initiated in prior years. The full-year impact of the January 2001 reduction in the personal income tax surcharge reduces revenue by S91 million, while the annualization of the final phase of the STAR program reduces personal income tax revenue by $145 million. On a common rate and base, the non-property taxes are forecast to drop 4,3 percent Th? forecast drop in securities industry profits from $21 billion in calendar year 2000 to $5,5 billion in 2001, together with a 6,1 percent drop in corporate profits nationally, reduces business tax revenue by $312 million from the 2001 level, A drop of 1.7 percent in wage incoine for fiscal year 2002, a result of the reduction in Wall Street bonuses accompanying the severe drop in profits, reduces personal income tax withholding by $84 million, while a 28 percent decline in capital gains'realizations, based on the recent declines in stock values, reduces revenue by $280 million. Finally, with reductions in securities industry profits leading to cutbacks in securities bonus payouts, sales tax growth drops to a below trend rate of 1.9 percent (common rate and base), while the real property transfer tax and mortgage recording taxes decline 8.0 percent and 11.2 percent, respectively. Despite the fall-off in non-prOperty tax growth, real property tax gjrowth, based ion one of the strongest assessment rolls in years, rises by ;6,2 percent, reducing the drop in tax revenue (before audits, STAR aid and the tax reduction program) to 2,0 percent.

\ \ )

■ I

I i;

31 L

NYC-WTC_000195528