Story perspectives

Hochul Rejects PTET Credit Cut Amid $5B Shortfall

5/2/2026

Summary

Story summary

Zohran Mamdani and Julie Menin proposed cutting PTET credit to 75% for $1 billion, but Governor Kathy Hochul rejected it.
NYC’s budget shortfall exceeds $5 billion, prompting officials to move deadline to May 12.
Mamdani said the credit helps filers earning over $1 million, 95% of 2023 credits.
Steven Fulop and John Catsimatidis warned cut could hurt small- and mid-size firms.
Legislators estimate limits could raise $700 million for the city and $1.8 billion for Albany.

History

Historical Context

February 1975 saw New York City confront a $2.3 billion fiscal crisis under Mayor Abraham Beame, leading Governor Hugh Carey to establish the Emergency Financial Control Board that imposed austerity and secured federal aid. Today, Assemblymember Zohran Mamdani, Council Speaker Julie Menin, Mayor Eric Adams, Governor Kathy Hochul and Mayor Steven Fulop argue over cutting the PTET credit, recalling the 1975 bailout’s cautionary legacy.

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Story summary

Zohran Mamdani and Julie Menin proposed cutting PTET credit to 75% for $1 billion, but Governor Kathy Hochul rejected it.
NYC’s budget shortfall exceeds $5 billion, prompting officials to move deadline to May 12.
Mamdani said the credit helps filers earning over $1 million, 95% of 2023 credits.
Steven Fulop and John Catsimatidis warned cut could hurt small- and mid-size firms.
Legislators estimate limits could raise $700 million for the city and $1.8 billion for Albany.

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