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After delay, Boston Mayor Michelle Wu's tax shift plan clears the House, advances to Senate

Gayla Cawley, Boston Herald on

Published in News & Features

BOSTON — Boston Mayor Michelle Wu caught a break Monday when the absence of a Republican lawmaker who blocked her plan to hike commercial tax rates on two occasions last week allowed the bill to pass the House and advance to the Senate.

The bill cleared the House quickly, representing a stark contrast to the drama seen last Thursday and Friday, when, doubting the presence of a quorum, state Rep. David DeCoste of Norwell used a procedural tactic to end legislative business on both days, while citing concerns with how the plan would impact the economy.

State Rep. Rob Consalvo, noting that he’s been hearing from constituents who are “waiting anxiously” for the bill to become law, said he spoke with DeCoste after his second objection last Friday, describing it as a “very cordial conversation.”

“I was grateful that he took my call and now I’m just thrilled that we’re able to move forward,” Consalvo, who sponsored the House bill, told the Herald. “This is a good example of a good compromise. The committee had reservations and their reservations were reflected in the compromise. The business community had reservations.

“I think the mayor made it a much better bill by the changes she made,” he added, “and I’m grateful that we were all able to work together to get it done.”

DeCoste told the Herald, however, that had he been present, he would have deployed the same procedural tactic to block the bill again. He said he had a death in the family and was attending services.

The bill, designed to fend off a 28% quarterly property tax spike for homeowners in January by allowing the city to shift more of its tax burden onto businesses, now moves onto the Senate.

“It is the Senate president’s intention to bring this legislation to the floor on Monday, Dec. 2, 2024, giving Senate members and the Wu administration a week to continue conversations,” a spokesperson for Senate President Karen Spilka said in a statement.

Mayor Wu expressed gratitude to the House for advancing the legislation, while looking to further action in the Senate, where a prior version of her tax plan stalled.

“We look forward to continuing our work and conversations with the Senate to advance this consensus measure as soon as possible to protect Boston residents from a potential devastating tax spike,” Wu said in a statement.

Wu has stated that the Legislature needs to act by the end of this month to allow the city to set tax rates and send bills out in December.

The mayor’s plan is responsive to changing post-pandemic work patterns that have resulted in falling commercial property values and vacant office space that has shifted more of the city’s tax burden onto the residential sector and put a strain on a city budget that derives more than 70% of its revenue from property taxes.

Wu’s office has provided data that show homeowners would be hit with a 28% quarterly tax spike and 14% annual increase without the legislation, which would lower those respective tax hikes to roughly 18% and 9%.

 

The plan, despite featuring a compromise from four business leaders and fiscal watchdogs who had long objected to a tax shift they felt would be harmful to the economy, still continues to draw concerns.

Critics have pointed to the mayor’s rejection of calls to cut a $4.6 billion city budget that grew by 8% this fiscal year, while also arguing that the plan would cause further harm to an already struggling commercial sector.

All eyes now turn to the Senate, a chamber that’s been more skeptical of the plan. Republican Sen. Ryan Fattman did not explicitly say Monday whether Republicans in that branch also planned to further delay the bill.

“We’ll see,” Fattman told reporters. “I’ve heard a lot of concerns. A lot of people have reached out. Actually, surprisingly, some of my constituents who have business interests in Boston. You know, Boston’s a little unique in that it’s not your typical home rule petition. It affects a lot of people.”

Fattman added that he would be doing research over the next few days, citing plans to “eat some turkey and stew on it.”

Those concerns were evident soon after the bill cleared the House. The Massachusetts Fiscal Alliance and Small Property Owners Association quickly released statements slamming the legislative action. A petition had also been circulating beforehand with signatures from business representatives calling for the Legislature to reject the bill.

“This vote represents a betrayal of taxpayers, businesses, and anyone who values a vibrant and competitive economy in Boston,” Mass Fiscal spokesman Paul Craney said in a statement. “Instead of standing up for the hard-working entrepreneurs and small business owners who are the backbone of our capital city, House leadership allowed this reckless bill to sail through.

“This is not leadership; it’s complicity in a tax-and-spend agenda that threatens our economy,” Craney added. “House Minority Leader Brad Jones was at this morning’s session and had the power to stop this tax hike bill but declined to act. His decision not to take a stand for a fiscally responsible solution that would include spending cuts instead of putting taxpayers on the hook for a spending problem is tantamount to an endorsement of the policy.”

Jones’ office said he was only briefly in the House chamber Monday morning, not present when the Boston bill was taken up, and therefore not in a position to comment on it.

Amir Shahsavari, vice president of the Small Property Owners Association, said SPOA was “sorry to see the House pass this bill and hope the Senate will resist it, as it harms small businesses and commercial owners” from the Hub and surrounding cities.

“It’s like throwing ice water on the city’s economy,” Shahsavari said in a statement. “We do not support Mayor Wu’s bill as any tax should not be considered without budget cuts.”

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