Boston Mayor Michelle Wu has warned the city’s homeowners could face a 13% spike in property taxes beginning in January, an increase of $780 for the average homeowner.
WBUR reports the increase in residential property taxes is occurring while the city’s commercial properties continue to decline. In a press conference, Wu stated commercial property values fell by 6% this year while residential values rose by 2%. Last year, commercial property values were down by 5% while residential property values went up 3%.
Wu stated commercial real estate taxpayers in Boston can expect a 4.4% decrease in their property tax bills, an average of $210,000 in savings. The value of Boston’s commercial buildings has fallen since the pandemic, and the city is limited by state law on how much it can raise in commercial property taxes compared to residential property taxes. An effort last year by the city to gain “home rule” on property taxes died in the state legislature.
More than 70% of Boston’s $4.6 billion budget comes from property taxes, primarily from commercial real estate. Last year, the city’s budget increased by 4.4%.
Wu, who was re-elected last month, stated homeowners will face an extra high property tax bill in January because it applies the new tax rate retroactively to the previous quarter.
“With a 13% annual increase, the January bill will be felt as a 26% increase over the last quarter’s bill,” she said. “That’s a lot of money to come up with suddenly, particularly for our seniors and residents on fixed incomes, particularly for everyone who’s seeing energy bills go up as the weather gets colder and heating systems are turned on.”
Photo courtesy of Mayor Wu’s Facebook page
This is outrageous. Property owners in Boston and California need to get involved to stop these transgressions – even if they are busy.
Democrats at their best! You get what you vote for. I’d like to see the percentage of residential property tax hikes over the last 7 years (2019-26). I’ll bet it is close to 50%. The city relies too much on commercial property taxes for its budget but so do a lot of municipalities. Diversified revenues are needed. Isn’t there a city income tax too on residents? Strategic budget cutting is needed because slashing of this city and most city budgets is not feasible. These types of residential property taxes are being felt across the country. Just ask Florida residents!
Your argument is a little weak targeting Democrats for tax increases…Florida is a very red state with a Republican Governor but you are right in one respect, property taxes are ridiculous, even in red states and definitely Florida!
OK, But Florida does not have State Income Tax. How much tax does MA residents pay in Income Tax. Florida relies on property taxes.
Apparently, mayor isn’t choosing to be reelected.