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Massachusetts House Okays Temporary Hike in Boston Commercial Property Taxes
The Massachusetts House of Representatives on Tuesday approved Boston Mayor Michelle Wu’s proposal to authorize the city to temporarily raise commercial property taxes, reported the Boston Business Journal. The approval came after Wu and House legislators agreed to a scaled-back version of the plan, which still needs to pass the Massachusetts Senate before the legislative session ends.
The mayor has agreed to lower the maximum increase in commercial property taxes from what she originally proposed and to cut down the length of the tax hike to three from five years. The rationale behind the increase was to prevent a spike in residential tax bills.
However, because Wu’s proposal came before the Legislature as a home-rule petition, state lawmakers couldn’t modify the legislation themselves, the Business Journal reported. They would have to pass the original petition, and Wu would then make the agreed-upon changes through a future executive order and future funding.
Business groups such as the Greater Boston Chamber of Commerce, NAIOP Massachusetts and the Greater Boston Real Estate Board oppose the new plan, reported the Business Journal. They say it would still hurt a commercial real estate industry already struggling with high vacancies and declining property values.
- ◦Financing
- ◦Policy/Gov't