Overview
- Draft one-house budgets obtained by NY1 show both chambers backing higher New York City corporate taxes to 10.8% for finance firms and 10.62% for others, potentially generating up to $1.5 billion.
- Both proposals add a higher bracket for top earners above $5 million, differing from the mayor’s separate push for a 2% surcharge on incomes over $1 million.
- The Senate plan includes $500 million for city shelter reimbursements and $604 million in municipal aid over two years, while the Assembly proposes $600 million for smaller class sizes and $15 million for free bus pilots in each borough.
- City Hall is lobbying lawmakers with a memo seeking billions in new revenue and a $2.3 billion state reimbursement, as several legislators call the mayor’s 9.5% property-tax threat a nonstarter and the governor maintains her no-new-taxes stance.
- Pressure from stakeholders is intensifying, with a top business group warning the tax push could deter investment, a multifaith coalition urging authorization of taxes on the wealthy and corporations, and polling showing support for taxing millionaires to avoid property-tax hikes.