While Mayor De Blaiso believes the city will lose a lot of Property Tax dollars. The MTA does not run Buses or Subways down every borough street. The MTA would only collect Property Taxes to fund close by Capital Projects.

Cuomo and De Blasio Battle Again, This Time Over New York City Taxes

Budget proposal seeks transportation improvement districts State would have ability to collect taxes in transit areas Governor Andrew Cuomo's proposal to allow New York's Metropolitan Transportation Authority to collect property taxes in neighborhoods served by mass transit would usurp the city's power to raise its own revenue, according to Mayor Bill de Blasio's administration.

 From article, (Governor Andrew Cuomo’s proposal to allow New York’s Metropolitan Transportation Authority to collect property taxes in neighborhoods served by mass transit would usurp the city’s power to raise its own revenue, according to Mayor Bill de Blasio’s administration.

The proposal, included in Cuomo’s fiscal 2019 budget summary, would let the MTA establish transportation improvement districts in New York City and capture revenues from rising real-estate values, without city approval. It also would require the city to match state funding for subway repairs whenever the governor declares a state emergency.

MTA Chairman Joseph Lhota said city officials would have the power to veto any transit project of more than $100 million, eligible for creation of a special tax district, through the city’s representatives on the state Capital Plan Review Board, a panel that must approve such projects statewide. 

Lhota, who served as a top deputy and budget director for former Mayor Rudolph Giuliani, didn’t address the likely possibility that a future mayor would be forced to reject construction of a major transit facility out of concern that supporting it would result in the city forfeiting property tax revenue to the state.

The dispute is the latest in a four-year long feud between de Blasio and Cuomo, the state’s most powerful Democrats. The two have battled over who should pay for fixes to New York’s problem-plagued subways. While the city owns the subway system, the state’s MTA runs it.)

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Me, "We are not talking about taking away that much city tax money. We are talking about certain places the MTA serves the Public by Mass Transit. The whole city is not serviced by the MTA. This is true if you have ever had to walk many blocks to a bus stop line or a subway line. The MTA would set up areas that would be used to collect taxes to fund Capital Projects. These areas would probably be close to Capital Projects. I can't see the MTA collecting taxes on a Manhattan street to fund a project in Brooklyn per say. I could see the MTA collect property taxes for a new Brooklyn subway line, that would run under a current Brooklyn bus line."