NYC-WTC_000195490

NYC 9/11 Public Portal Document

Real Property Tax Collections and Delinquency ($ Millions)

Cancellations, Tax Net Credits, Delinquency Tax Collection Prior Year Abatements, Delinquent as a ; Collection as a (Delinquent Exempt Property as of end Percentage Fiscal Tax on Current Percentage Tax) Restored and of Fiscal of Receivable/ Year Levy^; Year Levy 2 of Tax Levy Collections Refunds Shelter Rent Year^ Tax Levy Lien Sale*

i' 1989 >6,233’0 $5,913.4 94.9% $108.4 ($78.9) ($166.7) / ($152.7) 2.45% 1990 6,87>4 6,507.1 94.7 109.6 ^4.1) (135.0) (230.2) 3.35 199? ' 7,68>3 7,199.2 93.7 149.7 (62.7) (166.4); (315.7) 4.11 1992 8.3j'8.8 7,748.4 93.1 193.7 (124.3) (200.2)' (370.2) 4.45 1993 8,3^15 7,766.1 92.5 227.7 ' /(107.2) (215.j6 (411.2) 4.90 I 1994 8,113.2 7,520.3 92.7 223.1 ;(199il) (189)5) (403.4) 4.97 $200.6 / 1995 7,889.8 7,377.4 93.5 210.8 ; (164.2) (130.8) (381.6) 4(84 223.1 3.^7 I 1996 1997 7,871.4 7,835J 7,306.9 7,^71.3 92.8 94.1 240.6 146.8 (399.7) (271.4) (275.5) (179.4) (289.1) (284.4) 3.63 169.1 43.9 I 1998 i 7,890,4 7,414.2 94.0 148.2 (345.1) (199.1) (277.1) 3.51 21.7 ;i999 ) 8,099.3 7,519.0 92.8 127.7 (167.2) (304.1) (276.2) 3.41 119.1 >000 8,374.3 7,768.1 92.8 149.2 (189.4) (345.7) (260.5) 3.11 62.2 >00? ’ 8,730.3 8,030.0 92.0 137.0 (215.0) (429.7) (270.6) 3.10 184.3

(1) As approved by the City Council (2) Quarterly collections on current year levy. Amounts for fiscal year 1994, 1995 and 1996 are adjusted to eliminate the effects of the 1994 and 1995 sales of delinquent tax receivables. (3) These figures include taxes due on certain publicly-owned properly and exclude delinquency on shelter rent and exempt property restored in 1995 and 1996. j (4) Net of defective lien reserve and repurchase ofprior year defective liens. (5) Does not include supplemental levy of $61.7 million raised in mid-yearfor the "Safe Streets, Safe City" program. (6) Forecdit. M ’ i , ,

Reserve for, Uncollectible Taxes: The property tax levy, approved by the City Council each year, includes a I reserve for uncollectible taxes. Uncollectible taxes fall into three general categories: delinquency, ' cancellatioris of tax liability due to reductions in assessed value and tax expenditures for a number of housiiig and econoniic development programs. The improvement in delinquency rates since 1996 is partly due to the sale of real property tax liens, which prompted delinquent taxpayers to settle their arrears. Current and prior year tax liens of p06 million in 1996, $100 million in 1997, $79 million in 1998, $145 million in 1999 and $232 million in 2000 have been sold. Remissions in assessed value, granted by the City Tax Commission during the summer hearings after the final assessment roll is produced, are reflected in the reserve for cancellations: These actions represent most of the value of cancellations, which also include reductions resulting from court decisions and Law Department settlements. ' Each year the City forgoes revenue that it could collect under the basic taxi structure in order to protect Certain taxpayers or to create an economic incentive for taxpayers to take certain actions that would be beneficiai to the City as a whole. The foregone revenue is commonly referred to as a tax expenditure. Generally, tax expenditures are considered to be a targeted preference to a specific group or activity, a clear

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NYC-WTC_000195534