Mayor Zoran Mamdani’s proposal to raise property taxes by 9.5% to address a multibillion-dollar budget gap has sparked significant backlash from city council members and budget watchdog groups, who label it a “wrong choice.” Critics argue that this plan could lead to foreclosures and increased rents for tenants, suggesting instead that the city should cut unnecessary spending. Some accuse Mamdani of political maneuvering, creating a false dichotomy that pressures state lawmakers to impose higher taxes on the wealthy.
Initially warning of a $12 billion gap, the mayor later revised it to $5.4 billion after receiving additional state funding. Queens Borough President Donovan Richards cautioned that raising property taxes could exacerbate housing inequality and warned against returning to the foreclosure crisis seen in 2008.
Apartment owners expressed concerns that the proposal risks further financial strain on already taxed buildings, emphasizing that such costs would eventually burden tenants. Despite Mamdani’s call for property tax reform, critics argue that the city has the legal capacity to address its discriminatory tax system without needing state approval.
City Council President Julie Menin and Finance Committee Chair Linda Lee stated that raising property taxes should not be an option, and discussions about budget reforms are expected as the city prepares for upcoming hearings. Meanwhile, some experts advocate for creative alternatives to enhance revenue, like increasing metered parking, which could potentially yield billions without waiting on Albany. They assert that the city’s financial challenges require broader considerations than property tax hikes.
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