Greater Boston Chamber of Commerce Statement from James E. Rooney
Today, the Greater Boston Chamber of Commerce announced a compromise between business and policy leaders and the City of Boston regarding next year’s residential and commercial property tax burdens. While negotiations were difficult, and no party received everything it wanted, this compromise demonstrates that when stakeholders are willing to come to the table, practical solutions emerge to navigate complex public policy problems. We thank Mayor Wu and her team, the Massachusetts Taxpayers Foundation, NAIOP Massachusetts, the Boston Municipal Research Bureau, and leaders in both the House and the Senate for the frank conversations that occurred these last few months that led to an agreement.
We hope that this resolution mitigates property tax increases on Boston residents next year while avoiding significant new burdens on the commercial property market – and particularly small businesses. That said, approval of this new home rule petition at the city and state levels is only a temporary reprieve: this does not solve the underlying structural changes to the commercial property market and the property tax burden shift between residents and businesses. Those fundamental changes may require new approaches to city revenues and expenditures.
Fiscal discipline, forward thinking about spending proposals and city contracts (and their impacts), and constraints on revenue collection must all be considered in the future and not dismissed. We recognize the restrictions for potential revenues on municipalities, such as Proposition 2 ½ , but the City does have a variety of tools at its disposal should it choose to utilize them despite arguments to the contrary. That may require difficult decisions – the type of decisions that businesses and governments must confront and reconcile regularly to ensure future prosperity.
Downtown vitality and a strong commercial property sector are vital to Boston’s success, both for the City’s budget, but also for job creation, cultural vibrancy, and expanding economic opportunity of its residents. As we said at the outset of this debate: there is a symbiotic relationship between our businesses and City services and government, and we hope all parties can better recognize that our collective wellbeing will drive our region forward. The Chamber stands ready to continue to lead the difficult conversations that are necessary to make Boston the best place for all residents and all businesses to thrive.
James E. Rooney
President & CEO
Greater Boston Chamber of Commerce