Overview
- The mayor’s preliminary $127 billion plan presents a $5.4 billion two-year gap and two choices, pressing Albany for a 2‑point millionaire tax and a corporate rate hike or turning to local measures.
- City Hall’s fallback is a 9.5% across‑the‑board property tax increase, which would require City Council approval and would be the first such rate hike since 2003.
- Budget documents and watchdogs estimate the property tax option would raise about $3.7 billion next year, affect more than 3 million residential units and over 100,000 commercial properties, and add roughly $650–$700 to a typical homeowner’s annual bill.
- The plan also draws nearly $980 million from the Rainy Day Fund and $229 million from the Retiree Health Benefits Trust, steps fiscal watchdogs warn could weaken reserves while out‑year gaps still loom.
- Gov. Kathy Hochul opposes both new income and corporate taxes and a city property tax hike even as she pledged $1.5 billion to NYC, while Council leaders rejected the property tax option as the proposal moves into hearings and spring negotiations.