{"id":136732,"date":"2026-02-17T22:58:07","date_gmt":"2026-02-17T22:58:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/136732\/"},"modified":"2026-02-17T22:58:07","modified_gmt":"2026-02-17T22:58:07","slug":"mamdani-warns-of-harmful-property-tax-increase-if-tax-the-rich-plan-cant-support-127b-budget","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/136732\/","title":{"rendered":"Mamdani warns of \u2018harmful\u2019 property tax increase if tax-the- rich plan can\u2019t support $127B budget"},"content":{"rendered":"

STATEN ISLAND, N.Y. \u2014 The wallets of New York City homeowners could take a hit under Mayor Zohran Mamdani\u2019s Fiscal Year 2027 Preliminary Budget<\/a>.<\/p>\n

As explained by the mayor during a press conference at City Hall Tuesday afternoon, the city finds itself with two choices: either increase personal income taxes on New Yorkers earning more than $1 million annually and taxes on the most profitable corporations, or raise the property tax rate by about 9.5%.<\/p>\n

Mamdani calls the latter option a \u201clast resort,\u201d but noted that it is the only lever that the city can pull should Albany fail to take action on tax reform.<\/p>\n

\u201cThere are two paths to bridge the city\u2019s inherited budget gap. The first path is the most sustainable and fairest: raising taxes on the wealthiest and corporations, and ending the drain by fixing the imbalance between what the City provides the State and what we receive in return,\u201d said Mamdani. \u201cIf we do not go down the first path, the City will be forced to go down a second, more harmful path of property taxes and raiding our reserves \u2014 weakening our long-term fiscal footing and placing the onus for resolving this crisis on the backs of working and middle-class New Yorkers. We do not want to have to turn to such drastic measures to balance our budget. But, faced with no other choice, we will be forced to.\u201d<\/p>\n

Mamdani\u2019s property tax possibility prompted a fierce response from several Staten Island elected officials, with one City Council member coining the term \u201ctaxmail.\u201d<\/p>\n

According to the mayor, the city contributes 54.5% of state revenue, but receives only 40.5% back. Additionally, the city\u2019s portion of the state\u2019s GDP has grown by nearly 10% since 2010.<\/p>\n

By law, the city is legally required to balance its budget.<\/p>\n

Should the city choose the option of increasing the property tax rate, working and middle class New Yorkers with a median income of $122,000 will be the ones to bear the burden of this tax in what the mayor admitted is a city that \u201cis far too expensive for working class New Yorkers.\u201d<\/p>\n

In total, the city expects the impact will extend to over 3 million residential units and over 100,000 commercial buildings.<\/p>\n

On top of the potential increase to the property tax rate, the city will also need to withdraw $980 million from the \u201cRainy Day Fund\u201d in Fiscal Year 2026 and $229 million from the Retiree Health Benefits Trust in Fiscal Year 2027.<\/p>\n

A historic budget gap<\/p>\n

In recent weeks, Mamdani has been sounding the alarm on an approximately $12 billion budget gap<\/a>. He largely blamed former Mayor Eric Adams and former Gov. Andrew Cuomo for the crisis, saying the former downplayed the city\u2019s budgetary standing over the past four years and the latter funneled tax dollars from the five boroughs to pay for things in other parts of the state.<\/p>\n

\u201cThis was a historic deficit, larger even than those faced during the Great Recession,\u201d Mamdani said. \u201cMuch of this gap came in the form of significant underbudgeting for major expenses. The prior administration ignored projections that estimated costs would rise.\u201d<\/p>\n

In the hopes of trimming some costs, through Executive Order 12, Mamdani is requiring every city agency to designate a Chief Savings Officer to identify recurring efficiencies. These efforts are projected to save $1.77 billion across the fiscal years 2026 and 2027. The goals of these officers is to find savings of 1.5% in Fiscal year 2026 and 2.5% in 2027.<\/p>\n

By March 20, each Chief Savings Officer will issue a public report detailing the savings they have found and provide updated assessments every six months, according to Mamdani.<\/p>\n

The city also plans on hiring 50 new auditors at the New York City Department of Finance who are expected to generate $100 million annually. Additionally, 200 lawyers and 100 support staff will be added to the city\u2019s Law Department, which is aimed at reducing tort liability, a move that is expected to result in $125 million in savings in Fiscal Year 2027.<\/p>\n

After incorporating higher-than-expected revenues from Wall Street, estimated savings, $1.5 billion in additional funds from Gov. Kathy Hochul<\/a> and an additional $97 million in Foundation Aid \u2014 the city faces a remaining two-year gap of $5.4 billion.<\/p>\n

The Fiscal Year 2027 Preliminary Budget<\/p>\n

As of Tuesday, the $127 billion Fiscal Year 2027 Preliminary Budget assumes the city will issue the 9.5% property tax rate increase, which would generate $3.7 billion in Fiscal Year 2027.<\/p>\n

Should this come to be, the Fiscal Year 2027 Preliminary Budget will be balanced at $127 billion.<\/p>\n

Of that budget, $94 billion will go towards agency budgets. And of that $94 billion, 40% will go towards the Department of Education; 26% will go towards social services (DSS: 16%, DHS: 5%, ACS: 4%, DYCD: 2%); 12% towards uniformed agencies (NYPD: 7%, FDNY: 3%, DSNY: 2%); and the remaining 22% will be spread among the other agencies.<\/p>\n

The remaining $33 billion will go towards pensions and debt service.<\/p>\n

\u201cThis reflects our priorities, education, healthcare, safety and the everyday functioning of the city that we love. This preliminary budget increases city expenses by over $14 billion, expenses that we have to fund because the Adams administration failed to,\u201d the mayor added.<\/p>\n

Of the $14 billion across the two fiscal years, the majority fills what the mayor identified as underbudgeted needs. About 4% \u2013 $576 million \u2013 supports targeted investments, including: $100 million in Fiscal Year 2026 for snow removal; $5 million in Fiscal Year 2026 for warming centers and shelter connections for homeless New Yorkers; $11.9 million in Fiscal Year 2027 for new Street Health Outreach & Wellness mobile units and a new Bridge to Home site for people living with severe mental illness; $5.3 million in Fiscal Year 2026 and $38 million in Fiscal Year 2027 for the 200 new attorneys and 100 support staff and $54 million in Fiscal Year 2027 for HRA\u2019s Community Food Connection program.<\/p>\n

\u201cTaxing the rich will put the city back on its firm financial footing and taxing the rich at the scale that we proposed, not only does that, but also advances the affordability agenda,\u201d Mamdani said. \u201cNow one thing I will also add is that within our budget also is a reflection of the state\u2019s more than billion-dollar commitment to fulfill our campaign promise of delivering universal childcare to New Yorkers. What we are seeing is not only money that\u2019s earmarked to fix 3-K, meeting the demand of New Yorkers across the city, but also for the first time in city history, to deliver childcare for two-year olds, which will begin with 2,000 seats this year, 12,000 seats next year, by the end of year four \u2014 a seat for every two-year-old.\u201d<\/p>\n

The $113 billion Preliminary Five-Year Capital Plan includes $662 million in Fiscal Year 2027 in Section 8 conversions to boost renovations from 7,900 to more than 11,000. A $48.2 million investment will fully fund the renovation and expansion of Bellevue Hospital\u2019s Adult Comprehensive Psychiatric Emergency Program.<\/p>\n

Pushback from Staten Island officials<\/p>\n

Criticism of Mamdani\u2019s proposed property tax increase was swift and scathing from local Staten Island officials.<\/p>\n

\u201cAs a House Ways and Means Committee member, I fought to increase the State and Local Tax (SALT) deduction and deliver tax cuts for working Americans, middle-class families, and senior citizens on the federal level so New Yorkers could keep more of their hard-earned money,\u201d Rep. Nicole Malliotakis, said in a statement. \u201cI worked with President Trump and my colleagues in Congress to quadruple the amount that my constituents could deduct in local, state, and property taxes to provide necessary relief from New York City\u2019s high tax burden, not so this socialist mayor can tax and take more from them. Property owners pay enough taxes in this city.\u201d<\/p>\n

\u201cYear after year, City Hall squeezes the middle-class for more by raising the property tax levy, and now Mamdani wants to raise the rate, making the American dream of homeownership less attainable and the cost of housing even more unaffordable for property owners and renters alike,\u201d she added. \u201cInstead of further treating New York taxpayers like ATMs and driving out more families from our city, Mayor Mamdani should cut the bloat, slash the waste, and abandon the Marxism and misguided policies he has planned.\u201d<\/p>\n

Borough President Vito Fossella joined Malliotakis in strongly condemning potential tax hikes. Rather, Fossella called for the government to exercise some responsibility.<\/p>\n

\u201cWe have said since day one that year after year of irresponsible policy decisions \u2013 the sanctuary city policy, and \u2018right to shelter,\u2019 for example \u2013 would be unsustainable,\u201c Fossella\u2019s statement read in part. \u201cWe were right. $8 billion, and counting, have been spent continuing to provide unlimited emergency housing to migrants. There are countless examples of irresponsible spending that have gotten us to this point. Now, instead of getting smart with the budget and practicing good governance, the City\u2019s answer is to wave the white flag of surrender. Raising property taxes, as has been proposed, is bad policy and bad punishment, flying in the face of the hardworking taxpayers who keep this city running \u2013 the homeowners, small business owners and families who have already shouldered record-high assessments and inflation.\u201d<\/p>\n

New York City Council Minority Leader David Carr, who represents the mid-Island, provided a statement of his own to the Advance\/SILive.com criticizing Mamdani for threatening to raise property taxes.<\/p>\n

\u201cI think the Mayor just made up a new concept. \u2018Taxmail:\u2019 threatening to raise property taxes, which already disproportionately hurt Staten Islanders and South Brooklynites, if the state doesn\u2019t raise taxes on high earners and corporations, who already pay the highest combined taxes in the country and have been fleeing the state,\u201d Carr said. \u201cIt\u2019s a false choice. We can balance the budget without devastating our working and middle class families by being fiscally responsible, making smart cuts and not trying to make everything free for everyone.\u201d<\/p>\n

Councilman Frank Morano, who represents the South Shore, put out a video response on X in the wake of Mamdani\u2019s announcement.<\/p>\n

The councilman agreed with the mayor that property tax reform is needed, particularly on Staten Island, but criticized the mayor for proposing the largest budget in city history despite such a substantial gap.<\/p>\n

\u201cHere\u2019s what really concerns me, just weeks ago, we were told the city was facing a $12 billion budget gap,\u201d Morano said, in part, in his video response. \u201cNow suddenly it\u2019s either $7 billion or $5 billion depending on how you count. What changed? Did government suddenly become more efficient overnight? Did spending magically disappear? Or were the number being used to create fear and justify higher taxes? That kind of inconsistency damages public trust.\u201d<\/p>\n

City Council Majority Whip Kamillah Hanks, who represents the North Shore, echoed the sentiment that property tax in this city needs reform while also noting that \u201cthe city cannot balance its books on the backs of homeowners who are already struggling with affordability.\u201d<\/p>\n

\u201cA property tax increase would compound that pressure and place an even heavier burden on working- and middle-class neighborhoods at a time when financial stability is already fragile,\u201d Hanks said, in part. \u201cAt the same time, we must confront the reality that New York City\u2019s property tax system is outdated, inequitable, and in urgent need of reform. Simply increasing rates within a broken system would deepen those inequities rather than fix them.\u201d<\/p>\n

\u201cThe mayor campaigned on affordability and equity,\u201d Assemblyman Sam Pirozzolo, who represents parts of the North Shore, said in a statement. \u201cOverall, a tax increase does not address either. What we need is equity. When Former Mayor Bill DeBlasio\u2019s multi-million dollar brownstones are taxed less than some Staten Island homes, there is an obvious problem. Let\u2019s fix the problem.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"STATEN ISLAND, N.Y. \u2014 The wallets of New York City homeowners could take a hit under Mayor Zohran…\n","protected":false},"author":2,"featured_media":136733,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[9,24,63,134,136,135],"class_list":["post-136732","post","type-post","status-publish","format-standard","has-post-thumbnail","category-staten-island","tag-new-york","tag-new-york-city","tag-nyc","tag-staten-island","tag-staten-island-headlines","tag-staten-island-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/136732","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=136732"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/136732\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/136733"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=136732"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=136732"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=136732"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}