The dramatic hike would raise $3.7 billion for the next fiscal year, but could make it even more difficult for people to afford homes
New York Daily News
New York City mayor Zohran Mamdani has not had a lot of luck convincing the state's governor to boost taxes on corporations and wealthy individuals, so he's turning to plan B to help close the city's budget deficit — and a lot of New Yorkers are likely to hate it.
Mamdani's budget for Fiscal 2027 calls for a 10% increase in property taxes if he's unable to raise taxes on the wealthy. That would bring in an extra $3.7 billion to the city. That would translate to an extra $650 or (much) more per homeowner. New York City already has one of the nation's highest tax rates.
Raising property taxes would impact more than 3 million residential units, along with over 100,000 commercial buildings, the New York Times reported.
Mamdani was elected on vows to raise taxes for the wealthy, but that decision isn't one that he can dictate. Gov. Kathy Hochul, who is up for re-election this year, and the state legislature must approve any changes in tax rates. The mayor has proposed using that money to pay for other campaign promises, such as free child care and free bus service.
Any property tax would first need to be approved by the city council. And, so far, the mayor doesn't seem to have widespread support.
“At a time when New Yorkers are already grappling with an affordability crisis, dipping into rainy day reserves and proposing significant property tax increases should not be on the table whatsoever,” they said Council Speaker Julie Menin and Linda Lee, chair of the finance committee, in a statement.
In addition to the property tax hike, Mamdani has proposed drawing $1.2 billion from the city's cash reserves.
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