"Without Albany's willingness to hike income or corporate taxes, Mamdani is signaling he will need to turn to other measures to fund his budget. He's floating increasing property taxes for the city's residents - which would hit the middle and working classes as hard as his typical targets on Wall Street - alongside drawing from funds that the city keeps in reserve in case of an economic downturn."
"In an effort to balance his preliminary $127 billion budget, Mamdani outlined two potential paths forward. The first - and Mamdani's preferred - relies on cooperation from New York Gov. Kathy Hochul: increasing taxes on the wealthy and corporations, a cornerstone of Mamdani's campaign. Hochul has been lukewarm on the idea. If Hochul or Albany do not budge, Mamdani said he would increase property taxes by 9.5%. In the press conference, Mamdani said the tax would hit middle-class New Yorkers the most."
Mayor Zohran Mamdani faces a $5.4 billion gap in a preliminary $127 billion budget left by the prior administration. The preferred option calls for higher income and corporate taxes on wealthy individuals and firms, contingent on cooperation from Governor Kathy Hochul and the state. If Albany does not agree, a 9.5% property tax increase is proposed as a last-resort measure that would disproportionately affect middle- and working-class residents and renters. The plan also includes drawing from city reserve funds. The administration describes property tax hikes as painful while continuing to seek state action.
Read at Business Insider
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