Tax hike: What a Mamdani property tax increase would mean for home owners and renters

"The proposed property tax increase Mamdani outlined Tuesday would, if enacted in the final budget to be negotiated with the City Council this spring, affect every city property owner, regardless of income. City Council Speaker Julie Menin has already voiced her opposition to any property tax increases. But if property taxes are raised, experts warn that property owners will likely have to pass along a significant share of the increased costs to their tenants at least at some point."

"Anytime you suddenly tax something like this, capital, something physical like houses and property, you can get a bunch of tax money initially, but long-run effects are really bad, said Chris Ball, associate professor of economics at Quinnipiac University in Connecticut. Because what it definitely does is make it less valuable to invest in properties and develop the properties that you have."

Mayor Zohran Mamdani proposed a 9.5% property tax hike as a last-resort measure to shore up city finances and fund municipal services if state lawmakers do not increase taxes on the wealthy. The increase would require City Council approval and, if included in the final budget negotiated this spring, would apply to every property owner regardless of income. City Council leader Julie Menin has voiced opposition to property tax increases. Economists and housing experts warn that owners would likely pass much of the added cost to tenants and that higher property taxes can reduce incentives and capital for investment, development, and routine maintenance, worsening building upkeep especially in rent-controlled or rent-stabilized units.

Read at www.amny.com