Speaker Menin, homeowners, and fiscal hawks unite to block proposal without state wealth tax approval
City Council Speaker Julie Menin and prominent council members from both progressive and moderate districts announced February 19 they oppose Mayor Zohran Mamdani’s proposed nine point five percent property tax increase without explicit approval from New York State for complementary wealth taxes on millionaires and corporations. The unified opposition from multiple council factionsranging from Southeast Queens homeowners to Manhattan moderates to progressive housing advocatessignals that Mamdani’s leverage strategy may backfire. Menin stated clearly that property tax increases are “non-starter” without corresponding state revenue measures approved first.
Why Council Opposition Matters: They Control the Vote
City Council must approve any property tax increase over specified thresholds. The mayor cannot unilaterally raise property taxes. This structural requirement gives City Council tremendous leverage over Mamdani’s budget strategy. If Council maintains unified opposition to property tax hikes, Mamdani must find alternative revenue or accept cuts. This is precisely what Mamdani’s preliminary budget assumed would not happenthat property owners would mobilize so intensely that Albany would capitulate to state wealth taxes. Instead, property owners AND council members are mobilizing against property tax increases.
The Homeowner Coalition: Unlikely Allies in Opposition
Property owners from across the income spectrum have organized against the proposed increase. Southeast Queens homeowner organizations, representing predominantly Black and Latino homeowning communities, emphasize that existing property taxes already burden low-income homeowners disproportionately. They note that effective property tax rates in working-class neighborhoods often double those in wealthy white neighborhoods. Adding nine point five percent increase would deepen this inequity. Small landlords operating market-rate buildings have warned that property tax increases will force rent increases they claim Mamdani’s administration is simultaneously opposing.
The Progressive Housing Advocates’ Dilemma: Regressive Taxes Wrong
Some progressive housing advocates oppose the property tax increase not because they oppose taxes, but because they argue property taxes are regressive and fall disproportionately on working people. They contend that a progressive administration should prioritize income taxes on wealthy individuals as preferable to property taxes. A source from the Fiscal Policy Institute noted: “If we’re trying to fund the city progressively, we should tax wealth and income, not property. Property taxes are regressive and undermine housing affordability.” This creates unusual alliance where progressive tax justice advocates oppose increase that nominally funds progressive priorities.
Speaker Menin’s Position: Safety Valve for Budget Deal
Menin has positioned herself as practical dealmaker willing to engage budget negotiations but unwilling to impose pain on homeowners before exhausting other options. She has publicly supported exploring “congestion pricing expansion, parking meter increases, commercial vehicle registration fees, and other revenue mechanisms” before property tax increases. She also emphasized that raiding reserves further should be option if state doesn’t approve wealth taxes. Menin’s position gives Mamdani potential pathway: if he demonstrates genuine effort to secure state wealth tax approval and genuinely explores alternative revenue sources, she might accept modest property tax increase.
The Budget Politics: Why Mamdani Needs This Win
Mamdani campaigned on a platform centered around fairness and shifting burden to wealthy. His legitimacy among base depends on proving that he will fight for wealth taxes. Yet if he capitulates early without fighting hard for state approval, base will feel betrayed. Conversely, if he maintains uncompromising position on property taxes, he risks complete breakdown with City Council. The political tight rope requires him to fight ferociously for state wealth taxes while simultaneously appearing reasonable about compromise.
The State Reality: Hochul’s Non-Movement
The fundamental constraint is that Governor Hochul controls tax policy and has signaled no movement on wealth taxes. She has explicitly refused to authorize higher taxes on millionaires, citing economic and political concerns. Without Hochul’s approval, state wealth taxes cannot occur. Mamdani’s team has not presented clear strategy for changing Hochul’s position. This raises question of whether property tax increase proposal is serious threat or negotiating tactic without backing.
What Happens Next: Spring Budget Negotiations
Budget negotiations will intensify through spring, with City Council-Mamdani negotiations beginning in earnest in April. If state provides any openness to wealth taxes, property owners and Council members might be persuaded to accept interim property tax measures with commitment that they would be reduced if state approved wealth taxes. This “trigger” mechanism could resolve standoff. Alternatively, if Hochul remains firmly opposed to state taxes, Mamdani will need to propose alternative revenue or accept smaller property tax increase. Either way, the preliminary budget as proposed appears dead. See the NYC City Council official site for legislative status. Review City budget documents for proposals.
