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MAYOR IN TAX FUROR

Mayor Bloomberg suggested yesterday that he won’t send out the annual $400 property-tax rebate to small homeowners – even if legally forced to do so by the City Council.

“We have no money,” said the mayor. “I think that’s what you have to understand. This is not a legal issue; this is a fiscal issue.”

Sources said Bloomberg was furious at a lawsuit filed by Councilman Vincent Ignizio (R-SI) and other legislators aimed at forcing him to release the rebate checks.

They were originally scheduled to go out Oct. 1.

Earlier this week, Bloomberg appeared ready to throw in the towel on the rebate after city Budget Director Mark Page conceded the administration needs council approval to pull it back.

The chance of the mayor getting that approval is close to zero.

Asked how he could possibly get around the council, Bloomberg explained that he controls the checkbook.

“Well, we issue the checks,” he said. “I don’t sign them personally, but we issue the checks.”

The mayor’s stance was somewhat surprising, since insiders say the rebate was always a bargaining chip he intended to trade to the council for bigger concessions, such as approval of a 7 percent property-tax hike worth $1.2 billion. The rebate is worth only $256 million.

Bloomberg hinted that a deal could still be struck.

“We obviously aren’t going to send out checks when we don’t have the money,” Bloomberg said, adding the qualifying phrase “for the moment.”

Even the mayor’s longtime ally, Council Speaker Christine Quinn, parted with him on this issue.

“I can guarantee New Yorkers we are going to fight as hard as we can to get them those checks as quickly as possible,” she said.

Ignizio said the timing is critical because “$400 could be the difference between a Thanksgiving table, giving Christmas or Hanukkah presents, or paying your heating bill.”

Ignizio also said his phone has been “ringing off the hook” with calls from angry constituents.

During another part of his press conference, the mayor said he’s going to order thermostats lowered in city buildings.

“It’s hardly a big deal to keep everybody working,” he said. “Wear a sweater if you’re chilly.”

Additional reporting by Sally Goldenberg