Property Grunt

Friday, March 25, 2005

MTA property taxes: REBNY comes to the rescue

Oh Joy! Oh Rapture! More great news from the MTA! Not only have they slowed trains down due to construction, implemented fare hikes but they are also attempting to carpet bomb the New York City real estate industry with taxes to fund their MTA Capital Plan.

Straight from the mouth of REBNY:

Funding the MTA Capital Plan The Real Estate Board of New York has been successful in stopping a Senate proposal that would have imposed a 10% surcharge on LLCs, partnerships and S-Corps (generally all non-corporate forms of business) to fund the MTA Capital Plan. REBNY recognizes the importance of the MTA Capital Plan for a well-run transit system. However, we have been able to convince the legislature that this proposal would impair economic activity and ultimately undermine the long-term funding of our mass transit system. At the same time, we have voiced our opposition to a proposed increase to the mortgage recording tax or to the real property transfer tax. As a result of our efforts, the transfer tax proposal has been reduced to two tenths of one percent from three-tenths. So far, we have been able to avoid tax increases that would have the most adverse economic impact on our industry and our region. As this legislative update is being sent, the Governor and the legislature are seeking new sources of revenue for the MTA. We have proposed retaining either all or half of the one quarter percent sales tax surcharge that is scheduled to sunset in June. This option would meet the revenue target that has been identified in the various state tax proposals we have opposed. It is expected that the Governor and legislature will agree on the revenue sources to fund the MTA Capital Plan by the beginning of next week.

Here is a NY1 story on the whole legislature process and a sitrep from Gothamist on the current state of the MTA.

Taxes are a fact of life in New York City. You got to pay to play. But this is ridiculous. Whether the MTA needs new management, more money, I don’t know. But something needs to be done. If you are buying in New York City do it fast before this legislation passes or else your expenses are going to get a lot higher.

If anyone from the MTA is reading this can you do anything about those vendors selling bootleg DVDs on the platforms? Not only are what doing illegal but they are a hazard since they create congestion in the stations.

REBNY, I am glad are dues to being put to use. How about cheaper health coverage?