"To plug a more than $5 billion budget gap, Mayor Zohran Mamdani sees two options: Either raise taxes on corporations and New York's wealthiest or increase property taxes by 9.5 percent while tapping into the city's reserves. Gov. Kathy Hochul has rejected the former, which requires state action, and the latter, which Mamdani unveiled Tuesday as part of his administration's preliminary budget, swiftly drew criticism from landlord groups."
"This proposal, coupled with Mamdani's pledge to freeze rents for four years, virtually guarantees the physical destruction of tens of thousands of units of housing, Kenny Burgos, CEO of the New York Apartment Association, said in a statement. Jim Whelan, president of the Real Estate Board of New York, said tax hikes of any kind, including increases to an already egregiously regressive property tax system, to raise revenue or plug budget holes is a non-starter."
A budget shortfall exceeding $5 billion presents two fiscal options: raise taxes on corporations and high earners or increase property taxes by 9.5 percent and use reserves. Governor Kathy Hochul rejected corporate and millionaires' tax increases and does not support raising property taxes. Landlord and real estate groups strongly oppose tax increases and warn of housing loss and financial strain on small property owners. The administration estimates a 9.5 percent property tax rise across four classes would generate about $3.7 billion. The property tax path is described as painful and positioned as a last resort while officials seek alternatives through Albany.
Read at therealdeal.com
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