The focus is on the personal income tax and the real property tax, particularly the tax on commercial property. These are two elements of tax policy for which New York City has distinctive policies and for which changes may be considered.

The paper is organized in four sections. The first describes the structure of local taxes in New York City and compares it to that of other large cities in the United States. The second reviews the literature on the relationship between taxes and migration of residents and employment, and it presents data on the current pattern of residential choice and migration in the New York region. The third focuses on the local personal income tax, indicating how hypothetical increases in the rate structure would affect household tax burdens. The fourth section focuses on the tax on commercial property indicating how New York City compares to other large cites in this type of tax and commenting on the possible implications of an increase.