New York City’s projected property tax revenue could be short $1.12 billion in 2027 as a result of falling office values, according to a study by the city comptroller’s office.
The shortfall equates to about 3% of the projected total property tax collections estimated by the comptroller’s office. “While not a small amount, it is well within the range in which tax revenues can ordinarily vary,” the comptroller’s office said.
New York is one of many American cities bracing for potential revenue losses resulting from Covid-era hybrid work arrangements. Downtown office buildings remain half-full more than three years after the onset of the pandemic, and some analysts are predicting deep problems for city budgets. Read more about that here.