"In his first budget proposal since taking office, Mamdani warned February 17 that the city may raise property taxes by as much as 9.5% to help close a projected $5.4 billion budget shortfall (1). He framed the increase as a last resort and argued it might be avoided if Albany approves a proposed income tax hike on New Yorkers earning $1 million or more."
"Property taxes play an outsized role because they are the city's largest source of revenue and the only major tax New York City can raise on its own. Mamdani said a 9.5% increase could generate roughly $3.7 billion. He emphasized that tax hikes are the last resort, saying the budget is designed to pressure state leaders to approve higher taxes on the city's wealthiest residents."
New York City faces a potential property tax increase of as much as 9.5% to address a $5.4 billion budget shortfall within a $127 billion preliminary budget that must be balanced. The city projects roughly $3.7 billion in revenue from such an increase. An alternative path depends on state approval of an income tax hike on New Yorkers earning $1 million or more. The city has limited fiscal tools because property taxes are its largest and only major revenue source it can raise independently. Without state action, the city may also tap reserve funds intended for downturns.
Read at Moneywise
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