After delays, Boston mayor’s tax-shifting plan clears the House of Representatives and heads to the Senate

Boston Mayor Michelle Wu took a break Monday due to the absence of a Republican lawmaker blocked her plan Raising commercial tax rates twice last week allowed the bill to pass the House of Representatives and move on to the Senate.

The bill was quickly approved by the House of Representatives, a stark contrast to the drama of last Thursday and Friday, when State Rep. David DeCoste, doubting the presence of a quorum, used a procedural tactic to end legislative business on both days , while expressing concerns about how the plan would affect the economy.

State Rep. Rob Consalvo noted that he heard from constituents who are “anxiously waiting” for the bill to become law, and said he spoke with DeCoste after his speech. second objection last Fridayand describes it as a ‘very cordial conversation’.

“I was grateful that he took my call and now I’m happy that we can move forward,” Consalvo, who sponsored the House bill, told the Herald. “This is a good example of a good compromise. The committee had reservations and their reservations were reflected in the compromise. The business community had reservations.

“I think the mayor has made this a much better bill with the changes she made,” he added, “and I’m grateful that we were all able to work together to get it done.”

However, DeCoste told the Herald that had he been present, he would have deployed the same procedural tactics to block the bill again. He said there was a death in the family and he was attending services.

The bill, aimed at averting a 28% quarterly property tax spike for homeowners in January by allowing the city to shift more of the tax burden to businesses, now heads to the Senate.

“It is the Senate President’s intention to bring up this legislation on Monday, December 2, 2024, which will give Senate members and the Wu administration a week to continue discussions,” a spokesperson for Senate President Karen Spilka said in a statement declaration.

Mayor Wu expressed gratitude to the House for advancing the legislation, while looking forward to further action in the Senate, where an earlier version of her tax plan stalled.

“We look forward to continuing our work and conversations with the Senate to advance this consensus measure as quickly as possible and protect Boston residents from a potentially devastating tax spike,” Wu said in a statement.

Wu has stated that the Legislature must take action by the end of this month to allow the city to set tax rates and send out bills in December.

The mayor’s plan responds to changing post-pandemic work patterns that have resulted in declining commercial real estate values ​​and vacant office space, shifting more of the city’s tax burden to the residential sector and creating a squeeze are on a city budget that generates more than 70% of revenues. % of property tax revenue.

Wu’s office provided data showing that homeowners would be hit with a 28% quarterly tax spike and a 14% annual increase without the legislation, which would lower the respective tax increases to about 18% and 9%.

The plan, despite containing a compromise from four business leaders and budget watchdogs who had long objected to a tax shift they say would hurt the economy, continues to raise concerns.

Critics have pointed to the mayor’s rejection of calls to cut a $4.6 billion city budget that has grown 8% this fiscal year, while also arguing the plan would further damage an already struggling troubled commercial sector.

All eyes are now on the Senate, a chamber that is more skeptical of the plan. Republican Senator Ryan Fattman did not explicitly say Monday whether Republicans in that branch also planned to further delay the bill.

“We’ll see,” Fattman told reporters. “I’ve heard a lot of concerns. Many people have reached out. Actually, surprisingly, some of my constituents have business interests in Boston. You know, Boston is a little unique in that it’s not your typical House Rules petition. It affects a lot of people.”

Fattman added that he would investigate in the coming days, citing plans to “eat some turkey and simmer on it.”

These concerns became apparent shortly after the bill passed the House. The Massachusetts Fiscal Alliance and the Small Property Owners Association quickly released statements condemning the legislative actions. A petition with signatures from business representatives also circulated in advance calling on the legislature to reject the bill.