NYC’s Mamdani warns of property tax hike if state rejects wealth tax

HUNT VALLEY, Md. (TNND) — New York City Mayor Zohran Mamdani warned Tuesday that property taxes will be raised if the state rejects a proposed wealth tax.

He said during a presentation of the city’s preliminary 2027 fiscal year budget that there will be a 9.5% property tax increase on some residents if Albany doesn’t approve a 2% income tax hike on the wealthy.

“There are two paths that we can walk: One that offers long-term stability, and a second one with significant pain that we deeply hope to avoid,” Mamdani said.

The potential property tax increase would affect more than three million residential units and over 100,000 commercial buildings, the mayor explained, although The National News Desk (TNND) couldn’t confirm. The wealth tax would apply to residents earning more than $1 million annually.

Governor Kathy Hochul has reportedly downplayed Mamdani’s warning. She said during a separate press conference that she wasn’t “certain there’s a property tax increase,” according to Spectrum News NY1.

“[The city] is required by law to announce where it is today, but it’s not resolved until there’s a lot of negotiation with the city council and a review with his budget team of what their real expenses are and what they need to be, and that’s not due until July, so there’s a lot of time to work this out,” Hochul explained.

The city is facing a $5.4 million deficit. Mamdani has said that his predecessor, former Mayor Eric Adams, mismanaged the city’s finances, although Adams has defended his fiscal policy.

The current mayor called the shortfall a “steep mountain” that can be overcome through a rebalanced relationship with the state. He claimed that Albany has taken a disproportionate amount from the city.

“We know that for far too long, New Yorkers have given far more to the state than what we have received in return,” the mayor said. “It is time to end the drain.”

Hochul, who hasn’t responded to TNND’s request for comment, announced Monday she would allocate $1.5 billion to help New York City address its financial issues. She has highlighted her firm support for the city, noting in her announcement of the allocation that she has also committed to expanding universal childcare, a policy Mamdani campaigned on.

“A strong New York City means a stronger New York State,” Hochul said.

“New Yorkers expect the state and the city to work together, and I’m proud to partner with the Mayor to deliver for working families,” the governor added.

Have questions, concerns or tips? Send them to Ray at rjlewis@sbgtv.com.