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Boston Mayor Michelle Wu reached a compromise with enterprise leaders to assist advance a proposal geared toward defending owners from a pointy spike in property taxes.
The deal introduced on Wednesday seeks to stabilize Boston’s tax system, which depends closely on business property income and has been thrown off steadiness by the hunch in workplace demand.
KEEP READING: Property tax income surges by virtually 9% from final yr
Wu’s plan entails implementing a non permanent hike in business property taxes to assist maintain the town funds afloat. With out the measure, the typical home-owner faces a 28% enhance of their quarterly tax payments, she mentioned earlier this month.
Enterprise leaders initially pushed again towards the proposal, arguing greater taxes would deepen the ache for the business actual property market, which is grappling with a nationwide hunch in workplace demand. Industrial property values in Boston have fallen 7% within the present fiscal yr, reflecting excessive emptiness charges in older and lower-quality workplace buildings amid the persistence of pandemic-era distant and hybrid work insurance policies.
In response to these issues, Wu revised the plan, limiting how a lot the town can shift the tax burden onto business properties and shortening the period of the non permanent tax enhance to a few years, from 5 years beforehand.
“This compromise acknowledges the disaster dealing with the business actual property sector, and as we glance forward, we should work collectively to encourage financial progress,” Tamara Small, chief government officer of business actual property growth affiliation NAIOP Massachusetts, mentioned in a press release.
READ MORE: 20 states with the best property taxes
The Massachusetts Home of Representatives accepted the tax shift in late July — days earlier than the top of the formal legislative session — after Wu agreed to comparable changes that may ease the influence for companies. The Senate had but to observe swimsuit, sparking criticism from Wu, who has mentioned Boston residents ought to blame the chamber if their taxes enhance.
The revamped proposal nonetheless requires approval from the Boston Metropolis Council, each chambers of the legislature and Governor Maura Healey.
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