City Council approves Wu’s revised property tax proposal

Local news

Council members clashed over the process in recent days but ultimately advanced Wu’s plan. It would increase commercial tax rates to prevent homeowners from seeing a big spike in their taxes.

As the Wu administration tries to win approval for a plan that would temporarily raise commercial property tax rates to avoid a major tax increase for residents, Boston City Council members voted overwhelmingly in favor of a bill on Wednesday. new iteration of the proposal.

Mayor Michelle Wu’s original plan was submitted to the City Council in April passed it in June. The support of lawmakers on Beacon Hill was still needed, and Wu reached a compromise with leaders in the House of Representatives before the legislation stalled in the Senate. Wu hurried away another agreement with business leaders and fiscal watchdog groups who had previously opposed the measure last week, and the mayor quickly petitioned the City Council for a new bylaw.

But Councilman Ed Flynn postponed an immediate vote, prompting the body to hold an emergency special meeting last Friday and a hearing Tuesday. Much of the discussion during Tuesday’s hearing and Wednesday’s regular City Council meeting focused on the timeline of the new proposal’s approval and the process behind it.

Wu faces a late November deadline for the city to finalize tax rates so property tax bills can be sent out at the start of the new year. Wednesday’s vote returns the legislation to Beacon Hill.

Without the plan, city officials say home owners could face a 28% increase in their tax bills in January, and the possibility of a 14% increase in property taxes year over year. Property taxes would still rise under the proposal, but Wu says she is working to minimize that spike for homeowners. On the other hand, commercial property owners would still see a reduction in their taxes regardless of the fate of the legislation. This decline would not be as large if Wu’s plan were ultimately approved by the Legislature and Governor Maura Healey.

The situation is largely a result of the pandemic-induced shift to remote working, which has led to high office vacancy rates. The value of commercial real estate fell and the value of residential real estate rose. About 71% of the city’s budget is funded by property taxes, so property owners will have to pay more to make up the difference.

On Wednesday, 12 council members voted in favor of passing the measure, while only Flynn voted against it. Council members John FitzGerald, Erin Murphy and Brian Worrell voted against the first version of Wu’s proposal in June. Councilor Julia Mejia voted ‘present’ last time. All four were in favor of the new version.

Flynn has become a more outspoken critic of Wu this year, and he is considering a run against Wu if she wants to be re-elected next year. Flynn said the council was “rushing” the process and criticized the Wu administration not consider other options. The city should have made cuts, instituted a hiring freeze and explored whether surplus resources could be used to address the problem, he said.

“In times of great crisis, strong leadership can never be about pride in authorship. We cannot let ideology cloud our judgment when it comes to what is best for the city of Boston,” Flynn said. “It didn’t have to be so divisive, pitting residents against businesses or creating public disagreements with the state and business.”

Many other council members used their time to push back on the claim that the process was rushed.

“This is the process. This is democracy. This is what we were all elected to do,” said Councilmember Gabriela Coletta Zapata, who oversaw Tuesday’s hearing. “I heard overwhelming support from colleagues and the public, and all objections to this particular proposal would have been honored. But the objections were not about the merits of this proposal, it was about possible bureaucratic or political slights.”

FitzGerald said he “expressed some concern” about how he would vote on the measure before Wednesday’s meeting. Although he ultimately voted in favor, FitzGerald struck a cautious tone. He worried about the long-term impact on businesses and said many residents will still struggle to pay their taxes even if the plan is implemented. He said officials should look at increasing tax exemptions for residents, seniors and veterans. They must also examine the need for budget cuts and find ways to reduce the city’s dependence on property tax revenue.

“Let’s not pretend we’ve cleared a big hurdle,” FitzGerald said.