5 ms·

"Taxes are a particular point of concern: state comptroller Thomas DiNapoli has cautioned against raising taxes further as New York’s may already be pushing out

"Taxes are a particular point of concern: state comptroller Thomas DiNapoli has cautioned against raising taxes further as New York’s may already be pushing out wealthy residents, who make up an important revenue base." Doesn't pushing out the wealthy reduce cost of living? I heard NYC has a lot of vacant residential properties held as investments.

shagmin 4y ago
I think you're describing a different thing. Those vacant residential properties could be owned from someone overseas who has never been to NYC. I interpret pushing out wealthy residents to mean someone moving to Florida and living there most of the year to avoid paying NYC income taxes, even if they choose to keep their NYC condo. NYC suffers a drop in tax revenue and the housing supply doesn't necessarily get better.
- treeman79 4y ago
  New York tax collectors are incredibly aggressive about pursuing this kind of stuff.
mcntsh 4y ago
> What is not in dispute is that the richest New Yorkers pay most of the income tax the city collects. The 41,000 filers in the top 1% pay just over 40% of all income taxes. The 450,000 in the top 10% contribute almost exactly two-thirds of the city’s income tax revenue. The remaining 3.3 million taxpayers pay the final third. https://www.thecity.nyc/economy/2022/12/6/23497265/nyc-tax-data-high-earners-drop-2020 https://www.thecity.nyc/economy/2022/12/6/23497265/nyc-tax-d...
vanilla_nut 4y ago
Oddly, NYC has very low property taxes: https://leavethekey.com/blog/property-tax-new-york-city-2021 https://leavethekey.com/blog/property-tax-new-york-city-2021 About .88% of assessed value on average, something like half the rate of the rest of New York State and less than half the rate of most of the Northeast! So it's actually a pretty cheap place to buy an investment property. Seems strange to me that NY puts so much of its tax burden on renters and so little on owners.
- ashwagary 4y ago
  >Seems strange to me that NY puts so much of its tax burden on renters and so little on owners. Well spotted, this would indeed solve a lot of affordability issues.
- xyzelement 4y ago
  I think it seems strange to you because you don't understand, but to be fair I didn't really understand this until I moved out of the city and bought a house on Long Island. My property tax here is almost the same as my city income tax was. In NYC as a renter - I pay my income tax. My landlord pays the same rate on his rental income (you probably forgot this part) AND the "low" real estate tax you are referring to. If I own my place, I am doubly fucked because I pay the high income tax and the RE tax. The only people who come out ahead under the NYC model are those who live in a place they own but don't have any income. I think it's a very small demographic.
xyzelement 4y ago
I don't have the stats handy but the numbers of who pays taxes are staggering. Something like top 10 percent of earners pay 60 percent of tax revenue and the next 10 percent pay the next 30 or something like that. So if NY loses just it's wealthiest, it's absolutely fucked.

shagmin 4y ago

I think you're describing a different thing. Those vacant residential properties could be owned from someone overseas who has never been to NYC. I interpret pushing out wealthy residents to mean someone moving to Florida and living there most of the year to avoid paying NYC income taxes, even if they choose to keep their NYC condo. NYC suffers a drop in tax revenue and the housing supply doesn't necessarily get better.

treeman79 4y ago
New York tax collectors are incredibly aggressive about pursuing this kind of stuff.

mcntsh 4y ago

> What is not in dispute is that the richest New Yorkers pay most of the income tax the city collects. The 41,000 filers in the top 1% pay just over 40% of all income taxes. The 450,000 in the top 10% contribute almost exactly two-thirds of the city’s income tax revenue. The remaining 3.3 million taxpayers pay the final third. https://www.thecity.nyc/economy/2022/12/6/23497265/nyc-tax-data-high-earners-drop-2020 https://www.thecity.nyc/economy/2022/12/6/23497265/nyc-tax-d...

vanilla_nut 4y ago

Oddly, NYC has very low property taxes: https://leavethekey.com/blog/property-tax-new-york-city-2021 https://leavethekey.com/blog/property-tax-new-york-city-2021 About .88% of assessed value on average, something like half the rate of the rest of New York State and less than half the rate of most of the Northeast! So it's actually a pretty cheap place to buy an investment property. Seems strange to me that NY puts so much of its tax burden on renters and so little on owners.

ashwagary 4y ago
>Seems strange to me that NY puts so much of its tax burden on renters and so little on owners. Well spotted, this would indeed solve a lot of affordability issues.
xyzelement 4y ago
I think it seems strange to you because you don't understand, but to be fair I didn't really understand this until I moved out of the city and bought a house on Long Island. My property tax here is almost the same as my city income tax was. In NYC as a renter - I pay my income tax. My landlord pays the same rate on his rental income (you probably forgot this part) AND the "low" real estate tax you are referring to. If I own my place, I am doubly fucked because I pay the high income tax and the RE tax. The only people who come out ahead under the NYC model are those who live in a place they own but don't have any income. I think it's a very small demographic.

xyzelement 4y ago

I don't have the stats handy but the numbers of who pays taxes are staggering. Something like top 10 percent of earners pay 60 percent of tax revenue and the next 10 percent pay the next 30 or something like that. So if NY loses just it's wealthiest, it's absolutely fucked.