Mortgage tax revenue down about 42%

BY CHAU LAM | chau.lam@newsday.com Mortgage tax collection across Long Island plunged about $94 million, or 42 percent, in the first half of this year compared with the same period in 2007, a result of continued weakness in the real estate market and a soft economy, according to the county clerks. Every single town, as well as Long Island's two cities, saw mortgage tax revenue plummet. The steepest decline occurred in the Town of Babylon, where revenue fell by more than 47 percent, according to the Suffolk County clerk. In all, six towns and one city -- Long Beach -- recorded a decrease of more than 40 percent. The drop in revenue has already forced Brookhaven and Smithtown to cut spending. Other towns are considering cutting services, dipping into reserve funds, delaying filling vacancies or putting off capital projects in... [read full story]