Homeowners bankroll NYC while quality of life plummets.

AM 570 Podcast

Column from The Wave

Property owners in NYC are the Golden Goose. We are, by far, the largest single contributing class to the NYC revenue stream. While we continue to pay our bills that fund this city, our services, however, continue to decline. Homeowners are the financial backbone of this city but the government takes us for granted. And why not? If a homeowner falls behind on their property taxes, the City will simply sell the debt to a third party vendor who will eventually foreclose, and take ownership of that property. The City's only concern is that its endless need for revenue will continue uninterrupted. Who cares about the homeowner whose job was lost due to government lockdowns or whose tenant stopped paying rent as directed by the government? If they stop paying their property taxes the City will simply find a new person to deed that plot of land to who will.

According to NYC Comptroller Scott Stringer's Annual State of the City's Economy and Finances Report, the total tax revenue for the City in 2021, from all sources (sales tax, hotel tax, income tax, etc.) will be about $59B. Of that, Real Estate Property Tax alone will account for $31B, or about 53% of the City's total tax revenue. To keep this in perspective, if you were to add up all of the City workers' salaries for 2021, it would amount to about $29B. In essence, the City's single revenue category of Property Tax covers the salaries for the entire NYC municipal workforce with an extra couple of BILLION dollars left over for good measure. In comparison, in 2021 the City will receive funding of about $26B from the Federal and State Governments. This money is cut up from the personal income taxes paid by the residents of NYC on their state and federal returns. So not only are property owners covering more than half of the City's tax revenue directly through their property taxes alone, they're also contributing to the remaining 47% through their personal income taxes as well.

While the economic crunch continues as a result of government mandated Covid regulations, homeowners are being squeezed and asked to carry a disproportionate share of the burden. On numerous occasions the NYS Governor and the Federal Government has encouraged tenants to ignore their legal obligation to pay their rent; However, we've heard not one government official speak a single word encouraging homeowners to ignore their property tax bill. That's not surprising because, as we've learned, that would single-handedly tank the City's revenue. In the meantime, the US Dept. of Housing and Urban Development is reporting that as of February 2021, 6.4% of home loans in NY are in a "seriously delinquent" status. That means they're at least 90 days behind in payments. That's more than double the 2.7% that it was in February 2020, before the Covid lockdowns.

While homeowners are always held accountable and expected to never miss a tax payment under any circumstances, those who collect our money and redistribute it to fund the seemingly countless City agencies and their pet projects are not. Where exactly is our money going? What are we getting in return? Crime is totally out of control in NYC. The school system is a total embarrassment both economically and ideologically. Unless a bicycle is your primary source of transportation, automobile travel is a terrible, and relatively unfair experience in this city. The slaying of the Golden Goose in this city is ridiculous. We don't mind footing the bill, but the quality of life and economic conditions in this city must improve.