New York City Mayor Zohran Mamdani is threatening to raise property taxes by 9.5% unless the state government agrees to his demand to raise taxes on the city’s wealthiest residents.
Property taxes are the city’s largest revenue source, and the mayor does not require input from the state governor to enact an increase. However, raising taxes on city residents can only be done by the state government. Mamdani’s insistence on a new wealth tax is opposed by New York State Gov. Kathy Hochul, who is seeking re-election this year.
NBC New York reports the proposed property tax would be the city’s first hike since the late 2000s, with the Democratic Socialist mayor claiming that action would raise $3.7 billion to cover the acute budget deficit.
“If we do not go down the first path, the city will be forced down a second, more harmful path,” said Mamdani in a news conference. “Faced with no other choice…we would have to raise property taxes. We would also have to raid our reserves.”
Mamdani’s threatened property tax increase came one day after Hochul announced she would provide the city with an additional $1.5 billion to cover its expenses.
“I’m not supportive of property tax increase, I don’t know that that’s necessary,” Hochul said when informed of Mamdani’s threat, which he insisted was a “last resort” option.
“I agree that this is not something that should be on the table,” Mamdani said. “However, the city has very limited tools by which it can reach the legal requirement of a balanced budget in both this fiscal year and the next fiscal year.”
