Boston Mayor Michelle Wu is ramping up her efforts to push a contentious tax proposal through the State House, despite dwindling prospects of success. The plan aims to shift more of the city's tax burden onto commercial real estate, preventing residential property owners from seeing significant tax spikes in the new year.
Wu has been warning that single-family homeowners in Boston are set to see a 13% hike in their property taxes starting January 1. She is urging business groups to affirm their support for the plan and speaking out about it more frequently during media appearances. However, Senate President Karen Spilka has thrown cold water on Wu's ambitions, highlighting alternative tax relief legislation from state senators Nick Collins and William Brownsberger.
The timing of the proposal is also working against Wu. The City Council is set to hold its final meeting of the year this week, when councilors must approve property tax rates and vote on the residential exemption amount. However, any potential action by the Legislature later in December could still come too late to prevent tax hikes.
Wu's plan would temporarily raise the cap on the commercial property tax rate before gradually returning to the current formulation over several years. This would help make up for a decline in commercial property values during the COVID-19 pandemic. However, business groups and fiscal watchdogs have offered mixed reactions, with some expressing concerns that increasing taxes on businesses could harm the local economy.
A feud is also brewing between Wu and Collins, who used a procedural move to kill Wu's proposal last year. Collins has accused Wu of playing politics, while Wu has called out Collins for being "either badly misinformed or purposely misleading voters" due to discrepancies between initial projections given by the city and final property valuations certified by the state.
Wu is still backed by allies on City Council and some labor unions, who have held a press conference in support of the proposal. However, it remains to be seen whether they can turn the tide in favor of Wu's plan.
Wu has been warning that single-family homeowners in Boston are set to see a 13% hike in their property taxes starting January 1. She is urging business groups to affirm their support for the plan and speaking out about it more frequently during media appearances. However, Senate President Karen Spilka has thrown cold water on Wu's ambitions, highlighting alternative tax relief legislation from state senators Nick Collins and William Brownsberger.
The timing of the proposal is also working against Wu. The City Council is set to hold its final meeting of the year this week, when councilors must approve property tax rates and vote on the residential exemption amount. However, any potential action by the Legislature later in December could still come too late to prevent tax hikes.
Wu's plan would temporarily raise the cap on the commercial property tax rate before gradually returning to the current formulation over several years. This would help make up for a decline in commercial property values during the COVID-19 pandemic. However, business groups and fiscal watchdogs have offered mixed reactions, with some expressing concerns that increasing taxes on businesses could harm the local economy.
A feud is also brewing between Wu and Collins, who used a procedural move to kill Wu's proposal last year. Collins has accused Wu of playing politics, while Wu has called out Collins for being "either badly misinformed or purposely misleading voters" due to discrepancies between initial projections given by the city and final property valuations certified by the state.
Wu is still backed by allies on City Council and some labor unions, who have held a press conference in support of the proposal. However, it remains to be seen whether they can turn the tide in favor of Wu's plan.