Boston Mayor Wu’s Tax Shift Plan Faces Another Defeat in State Senate
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Teh Massachusetts State Senate on Thursday overwhelmingly rejected Boston Mayor Michelle Wu’s proposal to shift the city’s tax burden from residential to commercial properties, marking the latest setback for the plan that has been stalled in the legislature for nearly two years. The vote, 33-5, came as an amendment to alternative Senate-led property tax relief legislation.
The core of the dispute centers on Mayor Wu’s attempt to exceed the state’s 175% limit on shifting taxes to commercial properties, a move intended to mitigate a projected 13% tax hike for Boston homeowners. City officials attribute the increase to a 6% decline in commercial property values coupled with a 2% rise in residential values.
This isn’t the first time the Senate has blocked the mayor’s initiative. The legislation was previously defeated in late 2024 adn remained stalled throughout last year before resurfacing this month. despite having already garnered support from “Boston city councilors, all 16 Boston state representatives, and now four of Boston’s six state senators,” the spokesperson said. The mayor’s office specifically thanked Senators Rush, Edwards, Miranda, and Jehlen for their support.
The defeat of the amendment fell along familiar lines, with Senators brownsberger and Nick Collins, both Boston Democrats, leading the opposition.The pair previously spearheaded efforts to block the mayor’s tax shift bill in late 2024.
Alternative Tax Relief Bill Approved
The Senate did, however, pass Brownsberger’s alternative tax relief bill by a vote of 37-1. This “tax shock” legislation aims to provide cities and towns with the tools to protect taxpayers from unexpectedly high tax bills when residential property values surge. According to a Senate fact sheet, the bill would allow municipalities to phase in tax increases or offer targeted tax credits in years where residential property tax hikes are projected to exceed 10%.
The bill, co-sponsored by Collins and Senate Minority Leader Bruce Tarr, now heads to the House of Representatives for consideration. “This is a targeted relief measure,” Brownsberger explained.”It’s only helpful to municipalities in a tax shock year. Tax shock years are not common, fortunately … and if a city has reserves, it can work.”
Concerns Over Impact on Businesses and Tax Equity
Brownsberger argued that the mayor’s plan, as embodied in the failed amendment, would not effectively target relief to the most vulnerable homeowners. He suggested that wealthier residents would benefit disproportionately from a tax shift,while small business owners would face increased property tax burdens. he also expressed concern that the amendment would open the door for all cities and towns to exceed the 175% tax shift limit,potentially disrupting the state’s established tax classification system. “The whole fundamental compromise of (tax) classification would be out the door, and I don’t believe that’s good for the Commonwealth in the long run,” he said.
State Senator Lydia Edwards,who voted in favor of the amendment,countered that Boston residents are primarily concerned about taxes and that the proposed tax shift would contribute to housing stability. She questioned the Senate’s reluctance to trust the City of Boston’s assessment of the situation, given its previous approvals of the city’s home rule petitions related to zoning and fiscal responsibility. “Why don’t you trust the Boston assessing department when it says I need this tax shift to protect my residents?” Edwards asked. “Just be consistent.”
Additional relief Measures Approved
The Senate also approved a separate tax relief bill proposed by Collins, with a vote of 37-1. This measure would provide tax rebates to low- and middle-income homeowners who already receive the residential tax exemption, utilizing the city’s $552 million surplus funds. Collins argued that it is indeed “unfair” for Boston to raise residential taxes substantially while maintaining a substantial surplus.
Prior to the vote,Mayor Wu’s office criticized both the Collins and Brownsberger bills as “costly alternative Senate proposals that require sacrificing needed funding for city services.” The future of the mayor’s original tax shift proposal remains uncertain, leaving Boston homeowners facing the prospect of a substantial tax increase.
