Overview
- Mayor Zohran Mamdani asked Albany to approve a two‑point millionaire income‑tax hike and lift the state corporate rate to 11.5%, which New York City cannot do without state legislation.
- Gov. Kathy Hochul rebuffed new state tax hikes, and City Council leaders rejected the mayor’s leverage play of a roughly 9.5% property‑tax rate increase.
- The proposed property‑tax hike is estimated to raise about $3.7 billion and would hit roughly three million homes, with critics warning landlords would pass costs on to renters.
- City Hall is also eyeing one‑time measures, including draws from the Rainy Day Fund and the retiree health benefits trust, plus limited agency savings identified by newly named chief savings officers.
- Editorial boards and local officials across the spectrum criticized the plan as risky or oversized, and new interviews and neighborhood reactions signaled political risks for the mayor as budget talks move toward Albany’s spring negotiations.