Mamdani wants to raise property taxes in New York by almost 10%.

During the election campaign, Mamdani promised to raise taxes on the wealthy. His idea was not supported by state officials, so now he's decided to increase taxes on homeowners, who aren't always wealthy. On February 17, New York City Mayor Zohran Mamdani proposed raising property taxes by nearly 10%. He called the measure "extreme." He said it would be necessary if Governor Kathy Hochul couldn't be persuaded to raise income taxes on wealthy residents. NYTimes tells in more detail.

The proposed 9,5% property tax increase would affect more than 3 million single-family homes, co-ops and condominiums, as well as over 100,000 commercial buildings.

Mamdani stated this while presenting a preliminary spending plan.

$127 billion budget

The budget plan, Mamdani's first as mayor, totals $127 billion. It will take effect on July 1 after adjustments and negotiations with the City Council.

That's up from the current spending plan of $122 billion. Mamdani said tax increases were necessary to close the $5,4 billion budget deficit.

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He blamed the budget gap on his predecessor, former Mayor Eric Adams, who claimed he left the new mayor with more than $8 billion in reserves.

The law requires a balanced budget

According to the law, the city budget must be balanced.

If Mamdani carries out his threat to raise property taxes, which will bring in an additional $14,8 billion over four years.

Property taxes are the only tax the mayor can regulate without Albany's approval. However, any increase must be approved by the City Council.

The mayor made it clear that he would prefer to persuade the governor to raise income taxes on the city's wealthiest residents. He has repeatedly called for a wealth tax.

Earlier this week, Mamdani received a significant boost from the governor, who announced an additional $1,5 billion in state funds for the city budget.

Several hundred million of that amount was raised by shifting spending on public health and youth services programs from the city to the state.

Child Care Expansion Partnership

The announcement comes amid a joint effort by the mayor and governor to expand child care with state funding.

The project begins in New York.

They've formed an unusual alliance. Hochul, considered a centrist, hopes it will help her secure the support of the city's progressive voters.

On February 17, the governor announced her opposition to raising property taxes.

Hochul has also repeatedly rejected the idea of ​​raising the income tax. She argues that it would place an unnecessary burden on working residents. She believes that cost-cutting measures and updated accounting may make such a move unnecessary.

"The mayor is obligated to present options. This doesn't mean it's a final decision," she said.

Criticism

Julie Menin, a Democrat and City Council speaker, said she opposes the proposal.

"New Yorkers are already facing an affordability crisis, using up their rainy day funds. The proposal to significantly increase property taxes should not be considered at all," she said.

"The Council believes that there are additional sources of savings and revenue that deserve careful consideration before increasing the burden on small owners and small businesses in the districts," she added.

Mamdani's support could help Hochul gain traction among New York voters. However, there are signs that such generosity could backfire in other parts of the state.

Bruce Blakeman, the executive director of Nassau County, received the Republican nomination for governor last week. Blakeman criticized the investment.

He said this is yet another example of how Democrats in general, and Hochul in particular, are prioritizing New York City over other parts of the state.

"Kathy Hochul is willing to hand over billions to New York City while suburban and upstate taxpayers struggle to pay the bills," he said in a statement.

He added that any state budget surplus should be used to cut taxes.

"Why should residents of Long Island, the Hudson Valley, or Western New York pay for policies and programs that don't benefit their communities?" Blakeman says.