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TaxBuzz Top 5 - Sanders, Newsom Battle Over CA Billionaire's Tax, Mamdani May Raise NYC Property Taxes Nearly 10% & More

by
Rebekah Barton
on
2/20/2026
TaxBuzz Top 5 - Sanders, Newsom Battle Over CA Billionaire's Tax, Mamdani May Raise NYC Property Taxes Nearly 10% & More

Each Friday, TaxBuzz brings you the top five tax and accounting headlines you need to know from the workweek. We know life can get busy and you don't always have time to scroll through your news feed to stay informed.

We weed through all of the week's stories to showcase the most important updates in the tax and accounting world. 

1. Sanders, Newsom Battle Over California Billionaire's Tax

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Credit: Thomas Winz/Getty Images

Sen. Bernie Sanders and California Gov. Gavin Newsom publicly sparred over a proposed one-time tax on the state’s billionaires, with Sanders urging a steeper levy and Newsom warning that too aggressive a rate could drive wealthy residents and investment out of California. The debate centers on how best to fund education, housing and infrastructure without harming the state’s economy, as lawmakers consider a tax that could raise billions from the richest taxpayers. State Rep. Ro Khanna has faced extreme backlash from tech titans amid his support of the tax. 

Sanders has pushed for a more expansive approach that would apply a higher effective rate and include more ultra-wealthy households, framing it as an issue of tax fairness and economic equity. Newsom, while supportive of taxing extreme wealth, has expressed concern that too high a levy could accelerate outmigration and weaken the state’s competitiveness. Both sides agree some new revenue is needed but differ sharply on structure and rates. 

The clash comes as California’s Legislature also weighs companion bills and potential ballot initiatives that would alter how the ultra-wealthy are taxed, tapping into broader national debates over wealth taxes and high-income levies. If enacted, the measure would join other states’ efforts to tax billionaires or top earners directly, a strategy already seen in places like Colorado and New York discussions earlier this year. 

Lawmakers and stakeholders are also debating constitutional and legal challenges that wealth taxes frequently face, with opponents arguing they could be struck down in court and supporters pushing for robust design to withstand litigation. The outcome could influence future tax debates nationally, especially as other states watch how California’s approach plays out amid economic and demographic pressures. 

2. Georgia Outdoor Gear Sales Tax Funds $33M For Parks, Trails, and Conservation

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Credit: Sean Pavone/Getty Images

Georgia’s Outdoor Stewardship Program — funded by dedicating a portion of the state sales tax on outdoor recreation gear to conservation and outdoor recreation projects — will provide $33.2 million this cycle for new parks, expanded trail systems and large-land conservation purchases across the state. That includes $2 million for a new nature park in southwest Atlanta, $1.46 million for McIntosh Reserve Park expansion, $3 million for a park along the Alcovy River in Monroe, and other projects aimed at broadening public outdoor access.

The program was established under the Georgia Outdoor Stewardship Act, which voters overwhelmingly approved to dedicate sales tax revenue on gear toward state and local parks, trails, wildlife habitat protection and land acquisition without raising the overall tax rate.

Stewardship funds are awarded through a competitive grant process managed by the Georgia Department of Natural Resources and are used to support both local and regional projects. This year’s slate reflects continued investment in outdoor infrastructure and conservation at a time when many states are debating how to balance tax relief with funding public goods.

Proponents say the dedicated sales tax ensures stable funding for outdoor amenities and natural resources that benefit communities’ quality of life and boost tourism and local economies, while critics sometimes question whether earmarking tax revenue constrains broader budget flexibility.

This funding boost comes against the backdrop of Georgia’s wider tax policy shifts this session, from proposals to phase out local homestead property taxes to debates over income tax reductions and rebates, highlight how states are juggling tax base changes with targeted revenue uses.

3. Mamdani Eyes Property Tax Hike If Hochul Doesn’t Raise Taxes On Wealthiest New Yorkers

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Credit: Spencer Platt/Getty Images

New York City Mayor Zohran Mamdani said he may pursue a city property tax increase by as much as 9.5% to help close a looming budget shortfall if Gov. Kathy Hochul does not agree to raise taxes on the city’s wealthiest residents and corporations in the upcoming state budget. Mamdani reiterated that New York City contributes far more in state revenue than it receives back in school and public service funding and argues that asking top earners to pay more is a fairer solution. 

City officials say the choice is between increasing property taxes on middle-class homeowners or securing additional revenue from high-income residents and businesses; Mamdani, meanwhile, contends that relying on property tax hikes would disproportionately burden middle- and lower-income homeowners. 

His comments come as state budget talks intensify and amid broader debate over tax policy in New York, following earlier proposals this session to impose higher taxes on wealthy earners and profitable corporations to address fiscal pressures in the city’s budget. 

Mamdani’s remarks spotlight the tension between city and state leaders over who should bear the brunt of revenue increases — homeowners through local levies or top earners through state tax reform — as both options carry political and economic risks. 

4. Florida House Backs Sweeping Homestead Property Tax Cuts Amid Debate Over Local Services

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Credit: Roberto Galan/Getty Images

The Republican-controlled Florida House passed a proposed constitutional amendment (HJR 203) that would dramatically cut or potentially eliminate non-school homestead property taxes for primary residences, sending the measure to voters for approval on the November 2026 ballot. Under the plan, if 60 % of Floridians approve it, homestead owners could see most local property taxes on their homes removed starting in 2027 as exemptions expand. The proposal passed the House 80-30 along party lines but faces uncertainty in the state Senate before the session ends.

Lawmakers and Gov. Ron DeSantis argue the cut would provide meaningful relief to homeowners who have faced rising tax bills in recent years, and some versions of the amendment would phase in the exemption gradually over a decade. Supporters also included language meant to protect funding for essential services like police and firefighters even as taxes shrink.

Opponents — including Democrats and local government officials — warn the moves could slash billions in recurring revenue for counties, cities and special districts that rely on property taxes for core services such as infrastructure, parks and emergency response. A recent fiscal analysis estimates the most advanced proposal alone could reduce local revenues by more than $13 billion annually.

The House measure focuses on eliminating taxes other than school levies, meaning public education funding would remain intact, but the broader debate centers on how local governments would replace lost tax dollars. If the Senate does not agree to a companion proposal, the amendment may not even make it to the ballot this year.

This is the latest move in an ongoing battle over property taxes in the Sunshine State, which is one of nine states that already lacks state income tax.

5. Virginia Proposal Would End Data Center Tax Breaks to Fund Climate and Local Services

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Credit: Nathan Howard/Getty Images

Virginia Gov. Glenn Youngkin and state lawmakers are advancing a plan to reduce or phase out long-standing tax exemptions for data centers — which have grown rapidly in the commonwealth and now account for billions in investment — in order to generate revenue for climate resilience programs, education and local services. The proposal targets incentives that have allowed hyperscale data-center operators to pay little or no state and local property tax, sales tax on equipment, and other levies, reversing a key element of the state’s economic development strategy. 

Virginia’s data-center tax breaks have been criticized by localities that say rapid growth has strained infrastructure and public safety services without commensurate tax revenue. Ending or scaling back exemptions could unlock hundreds of millions in new funds over the next decade, supporters argue, helping communities manage climate adaptation and growth pressures. 

Opponents, including industry groups and some local officials, warn that removing the incentives could slow future data-center investment, potentially hurting job growth and making Virginia less competitive with other states vying for tech infrastructure projects. They contend the existing tax structure has helped make the state a national leader in data-center capacity.

Legislators are negotiating how revenue from scaled-back exemptions might be deployed, with priorities including funding for renewable energy initiatives, flood mitigation, school construction and broadband access, which are all areas that have faced budget constraints. 

The debate over data-center tax policy reflects a broader reevaluation of how targeted incentives affect state and local tax bases, especially as Virginia grapples with balancing economic growth with climate resilience and equitable funding for essential community services. 

Which headline this week most interests you?

Feature Image Credit: Chip Somodevilla/Getty Images and Justin Sullivan/Getty Images

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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