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Boston City Council Approves Wu’s Commercial Property Tax Hike
In an 8-4 vote, Boston City Council approved a home rule petition to increase taxes on commercial properties if property values drop significantly. Proposed by Mayor Michelle Wu, the bill raises the commercial property tax cap from 175% to 200% of residential property taxes. The state legislature must still approve the plan.
Supporters argue it protects residents from steep home property tax hikes, with Councilor Gabriela Coletta Zapata emphasizing the need for flexibility. Opponents, like Councilor Ed Flynn, worry it will harm businesses and the struggling downtown office market.
The proposal follows a Tufts University report predicting a $1.5 billion tax revenue loss over five years due to declining office values. Real estate leaders, including Greater Boston Real Estate Board CEO Greg Vasil, warn it could worsen the city’s competitiveness. The state legislature recently removed a similar real estate transfer fee from Gov. Maura Healey’s housing bill.
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