New York City Mayor Zohran Mamdani has ditched his plan to raise New Yorkers' property taxes — an unpopular measure he threatened to use to help close a two-year deficit.
The decision to drop the tax hike is expected to be included in Mamdani's executive budget on Tuesday, according to a person familiar with the matter. That marks the latest version of the mayor's spending plan for the fiscal year that begins July 1.
A tax on second homes that was initiated by New York Governor Kathy Hochul is still being considered as part of state budget negotiations. Details of how the so-called pied-à-terre could be implemented are still unclear.
Earlier this year, Mamdani threatened to raise property taxes by nearly 10% as a way to lobby Hochul for more funding. He had little support for an across-the-board increase, with City Council members including Speaker Julie Menin opposing the plan. Any increase would have needed to be passed by that chamber.
Hochul and Mamdani announced Tuesday that the state would provide an additional $4 billion in new support for the city to help close the budget gap.
Mamdani's preliminary budget proposal alarmed credit rating companies, who changed their outlook on the city to negative, citing the city's long-term structural deficits. The mayor also had proposed sweeping nearly $1 billion from the city's savings, which are supposed to be used in times of fiscal calamity, to help close the gap.
For months, Mamdani has raised warnings for the city's financial situation — calling it “a generational fiscal crisis” that rivals the Great Recession. He has repeatedly called for higher taxes on the wealthy and corporations to help right New York City's budget, though those asks have been met with resistance by Hochul.
Raising property taxes was one of the few actions to address New York City's financial challenges that would not have required state approval. Other changes, including altering the income or corporate levies, would require signoff from Albany.
ALSO READ: 'Return Kohinoor Diamond To India': NYC Mayor Zohran Mamdani's Bold Message For King Charles — Watch
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.