Mayor Bloomberg and City Council Speaker Christine Quinn, usually political allies, had a closed-door argument at Gracie Mansion over his refusal to release property-tax rebates, sources told The Post.
Sources familiar with the Sunday-night meeting said the $400 property-tax rebate checks were a “hot-button topic.”
The mayor already has indicated he will send out the money later this month, but sources said Quinn blasted him for dragging his feet as he awaits City Council approval for his midyear budget package, which totals $1.5 billion in tax increases and spending cuts.
Bloomberg has told Finance Commissioner Martha Stark to send the checks out immediately once a deal is struck, sources said.
The council has yet to schedule a vote on the budget package, which includes a controversial 7 percent property-tax increase.