The New York City Council last week passed a new hotel tax and a 7% property tax hike to take effect next month in a compromise with Mayor Michael Bloomberg to allow a $400 property tax rebate to go to homeowners.

Bloomberg had argued that the city couldn’t afford the rebate but the City Council pushed back, saying he didn’t have the legal authority to withhold it. The rescinding the rebate would have saved the city an estimated $256 million annually.

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