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11/20/2024
9:00am - 10:30am
Suffolk University
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11/21/2024
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12/05/2024
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Boston Marriott Copley Place
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Suffolk University - Sargent Hall
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MAYOR MICHELLE WU AND BUSINESS STAKEHOLDERS ANNOUNCE AGREEMENT ON RESIDENTIAL TAX RELIEF PROPOSAL TO PROTECT BOSTON RESIDENTS FROM SPIKE IN PROPERTY TAXES
BOSTON – Wednesday, October 23, 2024 – Mayor Michelle Wu today announced that Jim Rooney, President and CEO of the Greater Boston Chamber of Commerce; Marty Walz, Interim President of the Boston Municipal Research Bureau; Tamara Small, CEO of NAIOP; and Doug Howgate, President of the Massachusetts Taxpayers Foundation have reached consensus on a path forward for the City’s residential tax relief proposal. The Mayor has announced that she will file a new home rule petition to stabilize property taxes and protect homeowners and renters from a dramatic spike.
The new home rule petition incorporates revised maximum tax shift levels with previous provisions approved by the City Council and amended by the House of Representatives:
The proposal allows for a modest modification to the current tax system with clear guardrails to prevent too great of a burden from being placed on commercial taxpayers. This proposal is revenue-neutral and time-limited, stepping down over three years back to the current classification system.
In order to take effect, the home rule petition must be approved by the Boston City Council and both chambers of the State Legislature, and signed by the Governor. Preliminary parcel-level valuations will be available for residents to view in late October 2024. Tax rates must be finalized and approved by the Administration and City Council in November 2024 for the Massachusetts Department of Revenue to certify in December 2024, with bills for the third quarter of the fiscal year mailed out to taxpayers by January 2025.
“For Boston to be a home for everyone, our residents and businesses depend on each other to thrive. As we continue working together on the challenges facing our communities and economy, I’m grateful for the strong leadership and partnership from across our neighborhoods and business community to plan for our shared future and economic growth. Thank you to Jim, Marty, Doug, and Tamara for your dedicated advocacy and partnership in reaching agreement to protect residents and provide stability. Thank you to Senate President Spilka for convening us through your leadership; and to Speaker Mariano, Chair Michlewitz, and Representatives, Council President Louijeune, Chair Coletta Zapata, and Boston City Councilors for advancing this proposal and continued support to get it done,” said Mayor Michelle Wu.
“The Mayor’s residential tax relief proposal is a common sense, proactive step to ensure the City can create stability for all property taxpayers,” said Chief Financial Officer Ashley Groffenberger. “Our compromise legislation is a critical next step to get this done, and I am grateful to all the stakeholders for their partnership to protect Boston’s homeowners and renters.”
“The Greater Boston Chamber of Commerce remains committed to creating a region where all people and all businesses can thrive. I am proud that we worked with Mayor Wu to reach a resolution that mitigates short-term property tax increases for residents while avoiding significant new burdens on commercial properties. Our united business community voice, which was led by the Chamber, the Massachusetts Taxpayers Foundation, NAIOP Massachusetts, and the Municipal Research Bureau was integral at every step of this process, and this will serve the City well as it tackles the fiscal challenges ahead,” said James E. Rooney, President & CEO, Greater Boston Chamber of Commerce.
“The Boston Municipal Research Bureau believes this is a wise compromise, albeit a short term one that calls upon all of us to focus on additional measures to protect both residential and commercial property owners such as restraining spending increases and incentivizing economic development,” said Marty Walz, Interim President of the Boston Municipal Research Bureau.
“The compromise reflected in this agreement enables the city to move forward with its fiscal year 2025 process and for us all to now refocus our collective efforts on implementing a long-term strategy for a thriving post-pandemic downtown. I want to thank Jim, Tamara and Marty for their leadership in this work, the Mayor and her team for the ongoing dialogue, and House and Senate leadership for their commitment to reaching a compromise,” said Doug Howgate, President of the Massachusetts Taxpayers Foundation.
“This compromise acknowledges the crisis facing the commercial real estate sector, and as we look ahead we must work together to encourage economic growth and development in the City of Boston to ensure a strong future for all who live and work here,” said Tamara Small, CEO of NAIOP Massachusetts, The Commercial Real Estate Development Association.
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