Office Value Decline to Cost Boston $1B in Tax Revenue 

Boston is expected to lose $1.2 billion to $1.5 billion in commercial property tax revenue over the next five years due to declining office building values, according to a report by the Boston Policy Institute.  

The city relies heavily on commercial property taxes, making up over a third of its revenue, and has limited options to make up for the loss. Officials are barred by state law from imposing sales or income taxes, and increasing residential taxes could lead to reduced home values and political backlash.  

The report suggests raising the residential tax rate, although it would need to be increased by 25% to 30% to offset commercial losses fully. The state could also provide Boston with more funding or taxing authority to address the shortfall.