Boston Mayor Michelle Wu confirmed Tuesday that she and area business leaders are nearing agreement on a new, more moderate version of her tax shift proposal to bring before the Boston City Council and state lawmakers by Thanksgiving.

The mayor and business community leaders have been deadlocked on the issue for months, with Wu’s original proposal stalled in Beacon Hill’s upper chamber. A seeming breakthrough came last weekend when executives from four vocal business organizations published an open letter signaling willingness to accept a modified tax rate increase.

“I think we’re getting there,” Mayor Wu told GBH News noting that, in response, her administration circulated a draft home rule petition for stakeholders to consider.

“Ultimately we have the same goal, which is for Boston to be as thriving and beautiful and competitive a city as possible,” Wu said of herself and the vocal business community coming closer to an agreement. “I think focusing on that common vision of everyone having a stake in the health, well-being and prosperity of Boston has been the driving message.”

Wu said a proposal needs to clear its multi-level approval process by late November in order to ensure a relief to residential taxpayers before bills are printed and mailed at the end of the year – a particularly tall order for Massachusetts’ notoriously sluggish legislature.

“The clock is running,” she said, ultimately striking an optimistic tone. “The hope is that because we have had so many months now of vetting and conversations and discussions and all different directions, hopefully there’s some familiarity with the issue and some comfort that if we land on a solution that makes sense all around, legislators could move as quickly.”

Other sources familiar with the talks have suggested an agreement could put the measure on a flight path to the governor’s desk.

“If it doesn’t happen, then residents will see a spike in their taxes while the commercial sector sees a significant tax decrease,” Wu said. “This is a mechanism where we can smooth that over so businesses still see a decrease and residents are spared a spike.”

The proposal comes amid a complex confluence of factors including state law that limits property tax hikes, a statewide trend of rising residential real estate values and a national trend of falling commercial real estate values.

Wu has said the move is necessary to shield Boston’s average single-family homeowner from seeing a 14 percent spike in their annual tax bill. The government, however, complicates itself on this issue.

State law allows Boston to set two property tax rates and collect more taxes from business properties than from residential properties. Right now, the city is allowed to extract as much as 175 percent more than what the business property tax share would have been if there were only a single tax rate. The greater portion of property taxes business properties are charged is referred to as a shift of the city tax burden.

Wu initially sought approval for a maximum shift of up to 200 percent, with the ceiling gradually scaling back over five years with an executive order authorization. The newly circulated proposal from Wu’s office would only seek a 182 percent shift with a three year scale back and no executive orders on the side. That, according to Wu’s office, would immediately save the average single family homeowner about 21 dollars on their annual tax bill, when compared to 181.5 percent shift that executives with the Greater Boston Chamber of Commerce, the Boston Municipal Research Bureau, the Massachusetts Taxpayers Association and the NAIOP Massachusetts have proposed. Conversely, business property owners with a $5 million commercial property would save about $319 annually under the business leaders’ proposal when compared to Wu’s.

The Boston Municipal Research Bureau Interim President Marty Walz offered comment beyond the open letter Tuesday, telling GBH News “the Research Bureau believes this is a wise compromise that the city should adopt.”

Sources familiar with the talks say it could come before council before the end of the month.

All sides have acknowledged that the immediate tax shift issue is merely a first phase to addressing the City of Boston’s heavy reliance on property taxes to pay its bills.

The tax shift would also represent a timely political win for Wu who is seeking re-election to office next year.