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Wealthier Manhattanites Leave State, Tax Gap

By DNAinfo Staff on October 27, 2009 6:14pm  | Updated on October 28, 2009 11:13am

By Jennifer Glickel

DNAinfo Reporter/Producer

MANHATTAN — A new study shows Manhattan residents moving out of the state at a very high rate in recent years and are being replaced by less wealthy residents.

Over 1.5 million residents have left the state since 2000, according to a report by the Manhattan Institute for Policy Research released Tuesday. These residents are being replaced by newcomers whose average income is 13 percent lower, putting them in a lower tax bracket and ultimately leaving the city with a huge amount of lost tax dollars.

The typical Manhattan taxpayer who moved out of the state made $93,264 a year, whereas the average new resident had an income of $72,726. The exodus of New Yorkers in 2006-'07 alone left the city with a $4.3 billion gap in taxpayer income.

About 60 percent of those who left New York state migrated to a southern state, with almost one-third of those people moved to Florida.

Despite the domestic migration losses, New York state's population overall has increased due to immigration from foreign countries, according to the report.

The loss of New Yorkers to domestic migration in the last decade is part of an ongoing trend. In the 1990s, 1.7 million residents moved out of New York.