Massachusetts Senate rejects Boston Mayor Michelle Wu’s tax-shift proposal

Boston Mayor Michelle Wu’s attempt to dial back a property tax hike for homeowners by shifting more tax burden to commercial properties finally got its day in the state Senate.

But the proposal was rejected Thursday in a 33-5 vote after a brief debate. Senate lawmakers instead approved a measure to allow all cities and towns in the state to offer tax credits to homeowners in years when property taxes increase by more than 10%.

Sen. Mike Rush, the West Roxbury Democrat who proposed Wu’s bill as an amendment to legislation the Senate advanced, said Boston residents are already receiving “startling increases” in their tax bills, with a 13% hike.

“This burden has disproportionately hurt working families in the city of Boston, as well as seniors on fixed incomes,” he said on the Senate floor.

Rush was joined by four colleagues in voting for the measure: Sens. Sal DiDomenico of Everett, Liz Miranda of Roxbury, Lydia Edwards of East Boston and Patricia Jehlen of Somerville.

Boston’s tax problem stems in part from the decline in downtown commercial property values since the pandemic, meaning landlords are paying less tax. Rush argued that city officials should be allowed to shift more tax burden to the commercial owners, in order to shield homeowners from this big surge.

“My constituents have reached out to me to let me know how high these tax increases are, along with general increases in the cost of living,” he said. The mayor, too, has said in recent days she's hearing from residents about the tax bills arriving in the mail.

Wu has been pushing lawmakers to pass her tax-shift bill for roughly two-years, with little success. Her lobbying efforts have pitted her against several Boston senators in a tense political battle that has bled into public view.

Sen. William Brownsberger, a Belmont Democrat who represents a portion of Boston, said if state lawmakers passed Wu’s tax shift measure, every other city and town that uses a tax structure like Boston’s would try to do something similar.

“I don't believe that's good for the Commonwealth in the long run, and I hope that we'll vote no on this, and I hope that we can move on past this issue to work with our municipal partners on all the goals we truly share,” he said.

Brownsberger has been a leading opponent of Wu’s tax-shift proposal, alongside Sen. Nick Collins, a South Boston Democrat. Brownsberger is facing a primary challenger this year who used to work for the mayor as a senior policy advisor.

Because the state Legislature holds significant sway over many tax-related decisions at the local level, Senate lawmakers have been able to block Wu’s proposal from moving forward.

In response to the Senate’s vote to reject Wu’s measure, a spokesperson for the city noted nearly all city councilors, 16 House lawmakers, and four of the city’s six senators support the proposal.

Edwards, the East Boston senator who is a former Boston city councilor, said state lawmakers have consistently trusted city officials to run their own affairs — from major development projects to raising revenue.

“Just be consistent with the trust that you've given,” she said, noting that Boston is facing financial strain under the Trump administration.

At one point during the debate, Sen. Kelly Dooner, a Taunton Republican, asked Rush to describe any protections in Wu’s proposal for small businesses — a reference to critics’ belief that raising taxes on commercial properties would hurt local businesses.

Rush dodged the question, saying the proposal is “quite clear” and was “unanimously voted” on by the Boston City Council.

Edwards jumped to his defense, outlining a series of other programs the city has set up to help small businesses.

“This amendment is not about assuring economic development,” Edwards said. “It is about shifting the tax burden so that residents are not overly burdened in this city, in this moment.”

The legislation the Senate did pass attempts to address “tax shock” years like the one Boston is experiencing this year.

It allows cities and towns to offer tax credits to ease the burden of large property tax increases and is primarily directed at people who have a child under 17, those aged 65 years and older, and residents who live in a neighborhood designated as high need by the federal government.

Brownsberger said so-called “tax shock” years are rare.

“That doesn't happen very often in a world where property taxes are limited to 2.5% growth. It can happen in extraordinary circumstances, as we've seen in Boston, where the commercial and industrial base is fading in value,” he said.