Boston Mayor Reaches Compromise to Prevent Homeowner Tax Hike

Mayor Michelle Wu negotiates a temporary increase in commercial property taxes to stabilize Boston's budget and avoid a 28% residential tax increase.

The deal involves raising commercial property tax rates to 181.5% of residential rates, stepping down to 178% over three years.
Commercial properties currently taxed at 175% of residential rates will see a temporary hike to balance the city's $4.6 billion budget.
The compromise comes amid declining commercial property values and high vacancy rates due to remote work trends.
The Massachusetts House approved the tax shift in July; the proposal now awaits Boston City Council, Senate, and Governor approval.
Business leaders and city officials reached the agreement to prevent a sharp tax increase for homeowners and support economic growth.