City Council approves Wu’s revised property tax proposal

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Advisers split over the process in recent days but ultimately pushed ahead with Wu’s plan. It would raise business tax rates so homeowners wouldn’t see a big jump in their taxes.

As the Wu administration works to win approval for a plan that would temporarily increase commercial property tax rates to prevent large tax increases for residents, Boston City Council members voted overwhelmingly Wednesday to pass the legislation. new iteration offers.

Mayor Michelle Wu’s original plan was introduced back in April, and the City Council passed it in June. The support of Beacon Hill legislators was still needed, and Wu came to a compromise with House leaders before the bill stalled in the Senate. Wu made it up one more deal with business leaders and financial watchdog groups who had previously opposed the measure last week, and the mayor quickly submitted a petition for new home rule to the City Council.

But Councilman Ed Flynn delayed an immediate vote, forcing the body to hold an emergency special meeting last Friday and a hearing Tuesday. Much of the discussion during Tuesday’s hearing and Wednesday’s regular City Council meeting focused on the timing of the new proposal and the process behind it.

Wu has a late November deadline for the city to finalize tax rates so property tax bills can be sent out early in the new year. Following Wednesday’s vote, the bill returns to Beacon Hill.

Without that plan, city officials say residential property owners could face a 28% increase in their tax bills in January and the possibility of a 14% annualized property tax increase. Residential property taxes would still increase under the proposal, but Wu says she is working to make the jump as small as possible for homeowners. On the other hand, commercial property owners will still see their taxes reduced regardless of the fate of the legislation. That drop wouldn’t have been as significant if Wu’s plan had ultimately been approved by the Legislature and Gov. Maura Healey.

The situation is largely a result of the pandemic-driven shift to remote work, which has led to high office vacancy rates. Commercial property values ​​have fallen while residential property values ​​have increased. About 71% of the city’s budget is financed by property taxes, so residential property owners will have to pay more to make up the difference.

On Wednesday, 12 council members voted in favor of the measure, with only Flynn voting against it. Council members John Fitzgerald, Erin Murphy and Brian Worrell voted against the first version of Wu’s proposal in June. Councilwoman Julia Mejia voted “present” last time. All four supported the new version.

Flynn has become a more vocal critic of Wu this year. I’m considering escaping against Wu when she runs for re-election next year. Flynn said the City Council “rushed” the process and criticized the Wu administration for without considering other options. The city should have cut costs, implemented a hiring freeze and considered using available funds to address the problem, he said.

“In times of great crisis, strong leadership can never be based on pride of authorship. We cannot allow ideology to cloud our judgment when it comes to what is best for the city of Boston,” Flynn said. “It didn’t have to be so divisive, pitting residents against businesses or publicly at odds with the state and the business community.”

Many other council members used their time to refute claims that the process was rushed.

“It’s a process. This is democracy. This is what we were all elected to do,” said Councilwoman Gabriela Coletta Zapata, who oversaw Tuesday’s hearing. “I have heard overwhelming support from colleagues and the public, and then any objections to this particular proposal would be taken into account. But the objections were not about the substance of the proposal, but about any perceived bureaucratic or political slights.”

Fitzgerald said he had “expressed some concerns” about how to vote on the measure before Wednesday’s meeting. Although he ultimately voted in favor, Fitzgerald struck a cautious tone. He’s concerned about the long-term impact on the business community and said many residents will still have a hard time paying taxes even if the plan goes through. He said officials should consider increasing tax breaks for residents, seniors and veterans. They should also examine the need for budget cuts and find ways to make the city less dependent on property tax revenue.

“Let’s not act like we’ve overcome a major hurdle,” Fitzgerald said.