Overview
- City Hall confirmed the withdrawal, and the approved budget omits the hike after New York State under Gov. Kathy Hochul agreed to send an extra $4 billion on top of $8 billion already pledged.
- The original 9.5% increase was designed to raise about $3.7 billion toward a roughly $12 billion gap.
- The administration now backs a pied-à-terre tax on second homes worth $5 million or more that could raise about $500 million a year and requires legislative approval.
- Housing advocates and owners warned a broad increase would be pushed into rents and make city living even more costly.
- Business leaders, including Citadel's Ken Griffin, warned higher taxes could send investment to places like Miami, shaping the debate as the mayor readies a final budget later in May.