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BOSTON (WBZ NewsRadio) — Boston city councilors held a special meeting Friday amid a heated fight over property taxes.
Earlier this week, Mayor Michelle Wu announced a compromise with business leaders to temporarily raise commercial property taxes to lessen the tax burden on residential properties in the coming years.
The City's agreement with the Greater Boston Chamber of Commerce, the Boston Municipal Research Bureau, NAIOP, and the Massachusetts Taxpayers Foundation concludes a months-long struggle between the two sides.
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The conflict began in June when the Boston City Council approved a home rule petition from the City to temporarily increase the tax rate up to 200% over a five-year schedule. In July, the Massachusetts House of Representatives approved the plan after Wu amended it to change the peak to 185% over three years.
Business leaders fought tooth and nail to prevent the plan from passing the Senate, but with a compromise reached, the conflict appears to be over.
On Wednesday, Mayor Wu filed a new home rule petition with the Boston City Council, which includes the following:
- A three-year step-down period, compared to five years as originally filed.
- Maximum shift levels not to exceed 181.5% in FY25, 180% in FY26, and 178% in FY27.
- Authorizing language for the City to appropriate up to $15 million for each of the three years (up to $45 million total) that the shift is in effect to offset potential impacts on small businesses due to the shift.
- Raising the personal property tax exemption threshold for small businesses from $10,000 to $30,000.
During an emergency council meeting that same day, however, Councilor Ed Flynn blocked a vote to move forward with the plan.
"This process is rushed. I don’t think we’re doing it due diligence," Flynn told the council Wednesday.
After Friday's meeting, city councilors set a public hearing on the plan for Tuesday, with a vote likely for Wednesday.
"We are on a little bit of a timeline because taxes need to be out to residents by January," Mayor Wu said Friday.
Wu said the taxes need to be finalized by Thanksgiving with a sign-off from city councilors, lawmakers, and the governor.
WBZ's Madison Rogers (@MadisonWBZ) reports.
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