In a rare second appearance before state lawmakers, Boston Mayor Michelle Wu Wednesday made another push for the authority to temporarily shift more of Boston’s property tax levy onto commercial and industrial property owners.
The tax plan is a revised version that comes after a different one stalled in the state Senate earlier this year. The mayor and business leaders from several of Greater Boston’s influential groups arrived at a compromise measure she described as “smart, balanced, and rigorously vetted,” last month.
“I’m very happy and grateful to report that this updated petition before you now reflects a consensus that we worked hard to achieve,” said Wu to the Joint Committee on Revenue.
The mayor has consistently said the measure is necessary to shield homeowners from suddenly spending more on property taxes due to a confluence of factors brought on by the pandemic.
“By now we’re all familiar with the circumstances that have made it necessary for us to put forward this home rule petition to protect Boston’s renters and homeowners from a dramatic increase in property taxes,” said the mayor.
“Broader national economic trends, shifting work patterns and commercial vacancies are all continuing to shape the financial environment that we are adapting to across the country and here in Boston and Massachusetts. We’re continuing to address these challenges with long-term solutions … but the short-term threat to our residents remains.”
Wu is seeking authorization of a three-year plan to push the legal business property tax limit up from 175% of the residential rate to 181.5% for one year, 180% the following year and 178% in the third.
It also increases the personal property tax exemption threshold for small businesses up from $10,000 to $30,000 and authorizes Boston to spend up to $15 million in grants and programs to support small businesses impacted by the shift. Small businesses are defined within the measure as those with less than $5 million in annual revenue or fewer than 50 employees.
Wu originally sought a five year plan with a higher property tax ceiling. The Boston City Council approved this latest plan last month on a 12-1 vote — a margin brought up by lawmakers who questioned Wu after her testimony Wednesday.
Supporters and opponents also appeared and rehashed their arguments on the proposal.
“They will be back in a few years for another one,” said Small Property Owners Association member Shlomo Pinkas, asserting that Boston would start a negative trend if granted the tax plan.
Paul Jenney, a man who identified as head of a tech company pointed a 19% increase in the city’s technology budget as proof the city has not done enough to justify the tax plan.
“Frankly, my company’s gone virtual, we don’t plan to return to the office and we don’t have work from home budget,” he said. “If you’re going to have employees not come to the office, they should figure out a way to make sure they can use already owned city computers [and] already owned technology and not raise taxpayer dollars to do this, and if people aren’t coming to work anyways, that’s costing City of Boston small businesses, local restaurants and local other establishments additional revenue.”
Senior homeowners with the Massachusetts Senior Action Council — mostly Black women who have lived in Boston for decades — reshared their fears of increased property taxes added to inflated grocery costs while surviving on fixed incomes.
“When you live on a fixed income, you learn to steal from Peter to pay Paul all the time. At 78, I did not think I would have to live like this and I am living like this,” said Adonica Chaplain, adding that she keeps her thermostat on 64 and welcomes guests with a warning to wear their sweaters.
“So I feel it’s time that we really, really need relief.”
The discussion comes at an odd political moment when Massachusetts lawmakers have been operating in informal session – since gaveling out of formal session in early August.
Wu told the committee that the measure would need Gov. Maura Healey’s signature within the next two weeks.
Sen. Susan Moran, Senate chair of the Joint Committee on Revenue, had begun polling committee members on the measure as the hearing wrapped up. An official with Moran’s office said the bill will likely emerge favorably from the committee soon.
