Dozens of homeowners with the Massachusetts Senior Action Council took to Beacon Hill Wednesday, urging state senators to greenlight Boston Mayor Michelle Wu’s controversial proposal that would enable her to temporarily raise property tax rates on commercial real estate. Echoing an argument from the mayor, the group said the measure is necessary to alleviate what would otherwise be a sudden, drastic increase in residential property taxes that many Boston residents cannot afford.
“It’s kind of depressing at night, when you have to lay down thinking that 40, 45 years ago, you buying a home [was supposed] to secure you in your golden years,” said Lillie Bryan, a Dorchester homeowner who advocated for the proposal.
Bryan told GBH News when she bought her house in 1979, property taxes cost her and her husband a few hundred dollars each year. In the time since, rising home values have vaulted her bill to nearly $3,000 annually, which she said she struggles to cover on a fixed income.
“Here I am 77 years old, not knowing whether other not I’m going to be forced to sell my house. It’s frightening,” Bryan said.
Business leaders have bashed Wu’s plan and insisted an increase in commercial property taxes would hurt a sector still recovering from the pandemic. With high vacancy rates, less rent collection, according to the Pioneer Institute, there’s “serious concern” that when “combined with significant debt associated with many commercial properties,” commercial property owners may surrender buildings to lenders. “High commercial tax rates exacerbate this dynamic,” researchers wrote in the 2023 report.
Wu tried to address some of those concerns Wednesday following a speech before the Greater Boston Chamber of Commerce, saying it’s the most responsible choice for the financial future of the city.
The group has previously slammed the mayor’s plan.
“Believe me — if I didn’t have to ask for this, I would be trying to pursue a different method because getting through all these levels of approval is tough,” Wu said responding to a question from Chamber President and CEO Jim Rooney about the tax plan, “but it is the one that maintains balance while managing this unique moment where we are in a major transition for our economy.”
Though her answer to Rooney’s question was met with applause, he later told GBH News that Wu didn’t change any minds.
“I think we’re pretty open about the fact that we’re in disagreement with the commercial property tax proposal,” he said.
Rooney pointed to Wu’s forthcoming reelection bid and said the mayor has to balance policy with politics.
“There is a political filter or overlay to public policy if you think about it, you know — residents who are voters are largely being protected here,” he said.
Wu’s proposal was triggered by a complex mesh of factors, including a state law that limits the commercial tax rate ceiling and a national trend of increased commercial vacancies brought on by a rise in hybrid work since the beginning of the COVID-19 pandemic.
Researchers with the Tax Policy Center have said that the new work patterns could lower the value of office “ by half in many cities.”
In Boston, Wu has said without her proposal, commercial property taxes are expected to go down by about 13%, which would trigger an increase as high as 33% for city homeowners.
With her proposal, she told the state’s Joint Committee on Revenue back in July, commercial property taxes would only go down about 7.6%, sparing homeowners from a spike.
Seniors who met with legislative leaders say they’re still unclear about where their local lawmakers stand on the bill. None of the six state senators who represent portions of Boston — William N. Brownsberger, Nick Collins, Sal N. DiDomenico, Lydia Edwards, Liz Miranda and Michael F. Rush — immediately responded to GBH News requests for comment on the measure Wednesday.
Senate President Karen Spilka, whose staff met with members of the Mass. Senior Action Council Wednesday, also did not immediately respond to GBH News’ request for comment.
