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In 1975, New York City almost went bankrupt and the State of New York had to bail uit out financially, and a condition of them doing so was control over our finances. Here’s my first AI breakdown.

New York City's ability to raise taxes is subject to limitations imposed by New York State laws, particularly in the area of property taxes.
Here's a breakdown:
Property Tax Cap: New York State has a property tax cap limiting the annual increase in the tax levy (total property taxes billed) for local governments, including NYC, to the lower of 2% or the rate of inflation, according to the Office of the New York State Comptroller. However, individual property tax bills can increase more than 2% due to factors like changes in assessed value.
State Legislature and Governor Approval: For significant tax increases, like those proposed on high-income residents or corporations, New York City requires the approval of the State Legislature and the Governor.
Home Rule Powers: While New York City, like other local governments in New York, possesses a degree of "home rule" power that allows it to manage local affairs, this power has limitations, especially regarding taxation, where the state maintains ultimate authority.
Specific Examples:
One recent example of a proposed tax that would require state approval is a "luxury pied-à-terre surcharge" on homes not occupied by their owners, according to the NYC Comptroller's office.
The state itself, not the city, raised personal income taxes on millionaires and increased corporate income taxes in 2021.
Property Tax Assessment: New York City's system for determining property taxes has been criticized as unfair and is facing a lawsuit alleging lower-income homeowners and owners of large apartment buildings pay more relative to their property values.
In essence, while New York City has some control over its finances and can raise certain taxes within existing state laws, significant changes often necessitate approval from the New York State legislature.