On Wednesday, Boston Mayor Michelle Wu and four business stakeholders came to a mutual understanding regarding the increase of commercial property taxes over the next three years. The goal was to limit these increases in order to alleviate some of the burden on homeowners and renters. To achieve this, Mayor Wu will submit a new home rule petition that incorporates suggestions from various organizations such as the Boston Chamber of Commerce, Boston Municipal Research Bureau, NAIOP Massachusetts, and Massachusetts Taxpayers Foundation.
Under this revised petition, there will be an increase in the maximum shift level for commercial landlords from 175% (current rate) to 181.5% for fiscal year 2025. This percentage will gradually decrease over each of the following two years instead of five years as originally proposed by Mayor Wu.
In her statement about this agreement, Mayor Wu stated that it allows for a modest adjustment to current tax policies with clear guidelines in place to prevent excessive burdens on commercial taxpayers.
This deal between Mayor Wu and business groups marks an important step towards finding a fair balance between increasing revenue through property taxes while also considering its impact on different segments within society.
