City faces big property tax hike

As Mayor Michael Bloomberg prepares for next week’s State of the City address, he is considering whether to end a 7 percent property tax cut and a $400 property tax rebate for homeowners, in order to help close the city’s budget gap. , James Parrott chief economist and deputy director of the labor-backed Fiscal Policy Institute, said homeowners should be prepared for the $400 rebate to disappear. “The mayor has always billed that as something we will do when we can afford it, but it’s not permanent,” he said. As The Real Deal reports in this month’s issue, brokers say any increase in real estate taxes could dissuade buyers at a time when the market is at a crossroads.