Real Estate Slump Could Hurt County

October 8, 2010 Updated Oct 8, 2010 at 8:01 AM EDT

October 8, 2010 Updated Oct 8, 2010 at 8:01 AM EDT

A report in today's Business First explains how Erie County gets a slice of each real estate transaction in the county thanks to a transfer tax it shares with the NFTA. The tax on each real estate deal is $9 per $1,000. Erie County gets $4 and the rest goes to the NFTA. In 2008, Erie County received $12.5 million in transfer-tax revenues. In the 2011 budget, County Exec Chris Collins is projecting $7.5 million, a drop of 41 percent in just three years. Erie County budgeted for $9.25 million in transfer-tax revenues this year. Collins says the county is not going to hit that number. The BNAR says real estate sales are off 11% this year as of Aug. 31.

Business First says transfer students are flooding several Western New York colleges and
universities. Many are from community colleges. The report says thirteen out of 20 area colleges are reporting year-over-year increases with transfer students this semester. Seven schools report double digit increases. many students are choosing to start at community colleges to save money or to explore which subject they want to study before moving on to four year schools.

You can read more in today's Business First.

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