Boston Property Tax Changes Inching Ahead at Boston City Council

Mayor Michelle Wu’s proposal to temporarily raise commercial real estate tax rates and prevent an increase in residential taxes inched forward Friday, when the Boston City Council voted to send the measure to a committee that reviews ordinances that affect city government operations.

The vote took place during a special emergency meeting held Friday morning, a necessary step after Councilman Ed Flynn used a procedural measure to delay the bill during Wednesday’s regularly scheduled meeting. Flynn asked Friday if the council would have a formal hearing with public testimony on the issue.

“This is an important issue for all of us and for the city of Boston, and I think it is always important to have a space for residents to have their voices heard,” said Councilwoman Gabriela Coletta Zapata, chair of the government operations committee.

The Wu administration presented its proposed home rule petition to the council on Wednesday after a months-long debate with powerful business interests and state Senate President Karen Spilka over how to balance the city’s $4.6 billion budget in the face of falling commercial real estate values.

About 71.1 percent of Boston’s operating revenue comes from property taxes, about two-thirds of which comes from commercial property taxes. With commercial assessments falling, due in part to the rise of hybrid and remote work after the pandemic, officials feared a substantial increase in residential taxes.

Under the new proposal, the average tax bill for single-family homes in Boston would increase about 9 percent year over year. An owner-occupied single-family home valued at $838,000 in the most recent tax year would see its quarterly tax bill increase from $1,380.43 to $1,628.91 in January and April, according to the Bureau of Research’s analysis of city data Boston Municipal.

Business tax rates, currently capped at 175 percent of the residential rate, would be temporarily raised to 181.5 percent before falling back to 180 percent in fiscal year 2026 and 178 percent in fiscal year 2027. Then they would fall again to 175 percent.

Ultimately, the petition needs approval from the state Legislature. The state Department of Revenue also needs to validate Boston property assessments before the new year, in time for the city to mail tax bills to residents in January. If no action is taken, residential taxes on the average single-family home in Boston would increase by about 14 percent a year.

“We have time constraints if changes are going to be made to the tax assessment,” said Council President Ruthzee Louijeune. “I’m trying to get us to act as quickly as possible, I don’t want any more undue delays so we can address this matter.”

The Council will meet again on Wednesday, October 30.

You can contact Catherine Carlock at [email protected]. follow her @bycathcarlock.