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flag NYC mayor proposes 9.5% property tax hike to close $5.4B gap, citing state inaction.

flag New York City Mayor Zohran Mamdani has proposed a 9.5% property tax increase—the first in over two decades—to address a $5.4 billion budget gap for 2026 and 2027, citing insufficient state support for taxes on the wealthy and corporations. flag The plan, part of a preliminary $127 billion budget, includes drawing $980 million from city reserves and $229 million from a retiree health fund. flag Mamdani calls the tax hike a last resort, emphasizing the need for state-level reforms to avoid burdening middle- and lower-income residents. flag Critics, including City Council leaders and Comptroller Mark Levine, warn the move is regressive and risks undermining fiscal stability amid an affordability crisis. flag The final budget must be approved by June 30, with negotiations ongoing between city and state leaders.

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