Overview
- New York City’s deficit remains above $5 billion, and the mayor and Council Speaker Julie Menin pushed the executive budget deadline to May 12 to wait for state decisions.
- The administration asked Albany to trim the Passthrough Entity Tax credit to 75%, which City Hall says would deliver about $1 billion to the city.
- The Passthrough Entity Tax lets owners of partnerships and S‑corps pay state income tax at the business level to sidestep the federal SALT cap, and the city’s proposal would keep more of that money local.
- Gov. Kathy Hochul said the state is not changing PTET and urged the city to review fast‑growing spending, noting earlier state support of roughly $1.5 billion over two years.
- The city also advanced a pied‑à‑terre charge on second homes valued above $5 million that is projected to raise about $500 million a year, while Citadel said it may rethink a $6 billion Manhattan project after the mayor spotlighted Ken Griffin’s penthouse.