Special to the Gazette

      Mayor Michelle Wu announced that Jim Rooney, President and CEO of the Greater Boston Chamber of Commerce; Marty Walz, Interim President of the Boston Municipal Research Bureau; Tamara Small, CEO of NAIOP; and Doug Howgate, President of Massachusetts Taxpayers Foundation have reached consensus on a path forward for the City’s residential tax relief proposal. The Mayor has announced that she will file a new home rule petition to stabilize property taxes and protect homeowners and renters from a dramatic spike.

      The new home rule petition incorporates revised maximum tax shift levels with previous provisions approved by the City Council and amended by the House of Representatives:

      A three-year step-down period, compared to five years as originally filed.

      Maximum shift levels not to exceed 181.5% in FY25, 180% in FY26, and 178% in FY27.

      Authorizing language for the City to appropriate up to $15 million for each of the three years (up to $45 million total) that the shift is in effect to offset potential impacts on small businesses due to the shift.

      Raising the personal property tax exemption threshold for small businesses from $10,000 to $30,000.

      The proposal allows for a modest modification to the current tax system with clear guardrails to prevent too great of a burden from being placed on commercial taxpayers. This proposal is revenue-neutral and time-limited, stepping down over three years back to the current classification system.

      In order to take effect, the home rule petition must be approved by the Boston City Council and both chambers of the State Legislature, and signed by the Governor. Preliminary parcel-level valuations will be available for residents to view in late October 2024. Tax rates must be finalized and approved by the Administration and City Council in November 2024 for the Massachusetts Department of Revenue to certify in December 2024, with bills for the third quarter of the fiscal year mailed out to taxpayers by January 2025.

      “For Boston to be a home for everyone, our residents and businesses depend on each other to thrive. As we continue working together on the challenges facing our communities and economy, I’m grateful for the strong leadership and partnership from across our neighborhoods and business community to plan for our shared future and economic growth. Thank you to Jim, Marty, Doug, and Tamara for your dedicated advocacy and partnership in reaching agreement to protect residents and provide stability. Thank you to Senate President Spilka for convening us through your leadership; and to Speaker Mariano, Chair Michlewitz, and Representatives, Council President Louijeune, Chair Coletta Zapata, and Boston City Councilors for advancing this proposal and continued support to get it done,” said Mayor Michelle Wu.

      “The Mayor’s residential tax relief proposal is a common sense, proactive step to ensure the City can create stability for all property taxpayers,” said Chief Financial Officer Ashley Groffenberger. “Our compromise legislation is a critical next step to get this done, and I am grateful to all the stakeholders for their partnership to protect Boston’s homeowners and renters.”

      “The Greater Boston Chamber of Commerce remains committed to creating a region where all people and all businesses can thrive. I am proud that we worked with Mayor Wu to reach a resolution that mitigates short-term property tax increases for residents while avoiding significant new burdens on commercial properties. Our united business community voice, which was led by the Chamber, the Massachusetts Taxpayers Foundation, NAIOP Massachusetts, and the Municipal Research Bureau was integral at every step of this process, and this will serve the City well as it tackles the fiscal challenges ahead,” said James E. Rooney, President & CEO, Greater Boston Chamber of Commerce.

      “The compromise reflected in this agreement enables the city to move forward with its fiscal year 2025 process and for us all to now refocus our collective efforts on implementing a long-term strategy for a thriving post-pandemic downtown,” said Doug Howgate, President of Massachusetts Taxpayers Foundation. “I want to thank Jim, Tamara and Marty for their leadership in this work, the Mayor and her team for the ongoing dialogue, and House and Senate leadership for their commitment to reaching a compromise.”

      “This compromise acknowledges the crisis facing the commercial real estate sector, and as we look ahead we must work together to encourage economic growth and development in the City of Boston to ensure a strong future for all who live and work here,” said Tamara Small, CEO of NAIOP Massachusetts, The Commercial Real Estate Development Association.

      “The Boston Municipal Research Bureau believes this is a wise compromise, albeit a short term one that calls upon all of us to focus on additional measures to protect both residential and commercial property owners such as restraining spending increases and incentivizing economic development,” said Marty Walz, Interim President of the Boston Municipal Research Bureau.

      “Facing this large tax increase has been very stressful for a lot of homeowners, especially seniors with limited fixed incomes,” said Lillie Bryan, Dorchester homeowner and member of the Massachusetts Senior Action Council. “We are hopeful that this compromise will be passed quickly and that more can be done in the future to expand tax relief for seniors and other homeowners with limited incomes.”

      “As a senior with a fixed income, a large increase in my property taxes would be devastating,” said Shirley Jones, president of the Meetinghouse Hill Civic Association. “I am grateful to Mayor Wu for advocating for residents like me and hope the Boston City Council and the State Legislature pass this compromise quickly to provide residents across Boston with enough time to budget accordingly.”

      “A sudden and dramatic tax increase would catch many residents off guard and will be a significant hardship for many, so I’m happy to see Mayor Wu reach this compromise with business groups,” said Larry Costello, President of West Roxbury Neighborhood Council. “I urge Boston City Councilors and state lawmakers to pass this common sense legislation swiftly to protect residents from dramatic increases to our property taxes.”

      “The entire Boston region greets positively Mayor Wu’s agreement with the business community regarding property tax adjustments over the next several years,” said Marc Draisen, Executive Director of the Metropolitan Area Planning Council. “This agreement will limit burdensome tax increases to residents due to the run-up in residential property values; it will also ensure that small businesses and commercial property owners see significant, but reasonably limited, reduction in property taxes.  We urge the full Legislature to pass the legislation immediately, and we urge Governor Healey to sign it.”

      “This deal achieves two essential goals: it safeguards the City of Boston’s municipal workers and basic city services, while protecting residents from a sudden and sharp property tax increase,” said Darlene Lombos, President of Greater Boston Labor Council. “We encourage the City Council and the State Legislature to pass this home rule petition as quickly as possible.”                  “This agreement is a major relief for Boston’s hospitality workers. Whether they pay rent or they pay a mortgage, now is not the time for a massive increase in housing costs. Congratulations to Mayor Wu and the business community for working day in and day out to make this important agreement happen,” said Carlos Aramayo, President UNITE HERE Local 26.