Boston officials attempt to prevent a rise in residential taxes by changing commercial tax rates

Acquired Through MGN Online on 02/06/2017

By Olivia Peters

Mayor Michelle Wu and her office are proposing a change in commercial tax rates that will hopefully make what is expected to be a 14 percent residential tax increase closer to 9 percent.

Since the Covid-19 pandemic, many businesses have shifted to a work-from-home model. With more employees working from home, Boston companies have reduced their office space
resulting in a decrease in rent and the value of commercial office buildings.

Wu’s administration has been working with various Boston business groups to create a tax proposal to move the tax burden off homeowners and onto commercial property owners.

Despite their efforts to compromise with businesses, there is some concern that the proposal is being rushed. In an emergency meeting held virtually Friday, City Councilor Ed Flynn expressed
his concern saying, “The process is rushed. I don’t think we’re doing the due diligence to all the constituents by not operating in a transparent manner.”

The city council has planned to hold a hearing on the tax proposal this Wednesday. By law, the legislature must sign off on the change before the proposal makes it to Gov. Maura Healey’s
desk.

Former Mayor Thomas Menino proposed a similar change 20 years ago which successfully moved the tax burden off of residential properties. Wu has said she is confident that this proposal will go just as smoothly and will not pose an undue hardship to Boston businesses.