Boston City Council has approved a home rule petition, proposed by Mayor Michelle Wu, to increase taxes on commercial properties in the event of significant drops in property values. The bill raises the cap for commercial property taxes from 175% to 200% of residential property taxes. This decision was made with an 8-4 vote and now awaits approval from the state legislature.
Supporters argue that this measure will protect residents from steep increases in home property taxes, with Councilor Gabriela Coletta Zapata emphasizing the importance of flexibility. However, opponents such as Councilor Ed Flynn are concerned about potential harm to businesses and downtown office market struggling during these times.
This proposal comes after a report by Tufts University predicting a $1.5 billion loss in tax revenue over five years due to declining office values. Real estate leaders like Greater Boston Real Estate Board CEO Greg Vasil warn that it could negatively impact the city’s competitiveness. Interestingly enough, just recently Governor Maura Healey’s housing bill had its similar real estate transfer fee removed by state legislators.
The article “Boston City Council Approves Wu’s Commercial Property Tax Hike” originally appeared on Connect CRE.
