Mayor Wu and business leaders strike deal on property tax plan

Photo Courtesy of MGN 

By Daniel Cordova Rubio

Boston Mayor Michelle Wu has recently reached a compromise with local business leaders concerning a proposed temporary increase in commercial property taxes. The compromise emerged after prolonged negotiations and aims to prevent a significant rise in residential property taxes in the coming years. 

Mayor Wu announced that several organizations, including the Greater Boston Chamber of Commerce and the Massachusetts Taxpayers Foundation, have agreed to a proposal raising the maximum tax shift for commercial properties over the next three years. 

This plan will increase the allowable tax rate differential from the current 175% to 181.5% this fiscal year, then to 180% and 178% in the subsequent years. These adjustments aim to alleviate projected property tax increases for residents, who were facing a potential 14% increase. 

The proposal also gives financial support to small businesses. The city can appropriate up to $45 million throughout the length of the proposed hike for small businesses, and the personal property tax exemption threshold for those businesses will be raised from $10,000 to $30,000.

The rates will be finalized and approved in November, and the Massachusetts Department of Revenue will certify it in December.