By Sean O'Brien
Housing market affects Public Transportation
It may surprise a lot of people but the bad real estate market is affecting New York State Transit Authorities. When anyone makes a real estate transaction he or she pay a tax that helps fund public transportation throughout the state.
Mortgage Recording Tax
A part of the tax people pay on real estate is called the mortgage recording tax. A portion of this tax goes to fund different transit authorities. Steve Koegel a spokesperson for Centro in Syracuse says, "there are fewer homes being sold, fewer refinancings going on, the prices of the houses have dropped. All of that has contribtued to a decrease in the mortgage recording tax funding for our transit authorities." He says the lack of tax funding has is one reason why last May, Centro increased it's adult fare by 25 cents. According to Real Estate Weekly, an online publication, the mortgage recording tax as dropped 32 percent from 2008. Onondaga and Oneida county have a mortgage recording tax of one dollar for every $100 of mortgage.
Sean O'Brien
7/30/09
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