Overview
- The city, which delayed its executive budget Tuesday, set a new May 12 deadline to buy time for state talks, with a Council vote on the extender expected Thursday.
- Mayor Zohran Mamdani and Council Speaker Julie Menin proposed cutting the Pass‑Through Entity Tax credit to 75% to raise about $1 billion, describing the benefit as concentrated among million‑dollar earners.
- The PTET lets owners of partnerships and S‑corps pay state tax through their business to sidestep the federal SALT cap, and city officials say more than 95% of the credits go to people earning over $1 million.
- Governor Kathy Hochul rejected the PTET change Tuesday as a personal tax increase and urged City Hall to find savings, while pointing to billions in state aid already on the table.
- City leaders also floated delaying some pension payments and seeking relief from the state’s class‑size mandate to save more than $1 billion, and they continue to back a pied‑à‑terre surcharge on non‑primary NYC homes over $5 million that could add hundreds of millions in revenue.