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BOSTON (WBZ NewsRadio) — Amid rising vacancy rates downtown and revenue problems in the city, Mayor Michelle Wu has been pushing state lawmakers to help protect residential homeowners from a possible increase in property taxes by transferring the tax burden onto commercial properties.
The pandemic heavily affected downtown Boston, especially in terms of property values and delinquent taxes.
In the business district downtown, vacancy rates have gone up, and real estate values and property tax revenue have gone down.
This has led to the city facing an impending revenue crisis, and it could mean larger property tax bills for residential homeowners in the area.
Mayor Michelle Wu has asked the state legislature to shift more of the property tax burden to owners of commercial properties. She said this will help protect residential homeowners from a possible increase in their property taxes.
“We are looking for these tools to be able to keep the system as close to where it is right now, rather than have it get out of wack because everything would shift automatically to residents.”
She also spoke about concerns for the city's budget which relies on these tax revenues.
“Nearly three quarters of the city budget comes from property taxes. We are asking for the ability to protect our residents. If we do nothing, there is a chance that residential rates would go up significantly, and that is what we’re trying to avoid.”
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At the State House, Senator Nick Collins, a Democrat who represents South Boston, said lawmakers are sensitive to Boston’s needs, but Massachusetts faces financial limits as well.
“Boston is the capital city. It deserves its fair share for sure. But we have to be sensitive to making sure we’re growing and not having any regressive actions.”
He added that the economy has to be a consideration in these plans.
“We have to be careful not to harm the economy. And that’s something that we’re very focused on in Beacon Hill. To strengthen the economy, not to harm it, because that’s where the tax revenue comes from.”
WBZ NewsRadio's Mike Macklin reports.
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