Lust for a New Tax on Real Estate Could Tempt New York State Next Year

The New York Sun reports:

For some politicians, a capital gains tax on real estate transactions could be a tempting source of revenue if increased costs or deficits surface.

According to the city's department of finance, in the last three and a half years, real estate transfers in New York City would have generated a total of $4.3 billion in tax revenues if the Cuomo tax - the 10% tax on gains in real estate transfers in place in New York state from 1983 to 1996 - was still on the books in Albany.

Governor Pataki has predicted the issue will come up early in the term of the next governor. Many of those who would deal with the question if it resurfaces were active in Albany when the tax was repealed 10 years ago.

New York State has an insatiable desire for tax revenue.