Though the calendar says December, residents could really feel as if they’re watching the film “Groundhog Day” with Invoice Murray and reliving the identical day again and again. For the third time, the Metropolis Administration is seeking to push their laws on the Massachusetts State Home to boost industrial property taxes past the state restrict.
For my part, elevating property taxes considerably on householders and companies shouldn’t be the reply. It’s time to display fiscal self-discipline, accountability, transparency, and optimistic management. In December of 2025, with tax payments despatched out shortly, blaming the Massachusetts State Senate, or pitting residents towards companies, could also be good politics – however it’s not within the long-term finest curiosity of town or going to assist residents. Boston works finest once we work collectively.
In October of 2024, and within the months earlier than, I wrote about my opposition to the Metropolis Administration’s property tax shift proposal. I consider town didn’t take into account various different different choices really helpful by fiscal watchdogs and anxious residents. With falling industrial property values, over 70% dependence on property taxes, and over 50% of our land absorbed by giant, nonprofit organizations within the PILOT program — we’ve long-term fiscal challenges to handle. For these causes, for over a yr and a half, I known as for reducing spending as a consequence of an 8% enhance in FY25, implementing a hiring freeze, and tapping funds surplus income over $1 billion.
My decision on establishing a Blue Ribbon Fee on Downtown workplace vacancies and our heavy reliance on property taxes unanimously handed the Boston Metropolis Council twice. We’re solely now beginning to talk about funds cuts and hiring freezes. Furthermore, regardless of a number of monetary consultants calling consideration to the center of the difficulty being our tax construction — that Boston is extra reliant on property taxes than another metropolis within the nation — we’ve spent the final 20 months avoiding that long-term concern whereas centered solely on the administration’s proposal.
For years, I mentioned the lasting impacts of work at home insurance policies and the dearth of foot visitors on small companies. Because the District 2 Councilor who additionally represents components of Downtown Boston and the South Boston Waterfront, I studied this concern and our struggling Downtown workplace market — when 20.1% of workplaces turned vacant with post-pandemic challenges and shifts to distant work. At the moment, as Council president, I advocated to shift again towards in-person metropolis enterprise and hearings, with a hybrid possibility for individuals with disabilities in thoughts. In 2023, I held a listening to on the Council the place panelist after panelist from the administration testified that regardless of regarding studies on downtown workplace vacancies and foot visitors, there was no trigger for alarm when it got here to this new regular.
In February 2024, a joint research authored by the Boston Coverage Institute and the Middle for State Coverage Evaluation at Tufts College indicated that Downtown Boston’s vacant workplace buildings might lower in worth 30% by 2029, and result in the Metropolis of Boston amassing $1.5 billion much less in income over the following 5 years, or annual tax revenues $500 million beneath our present ranges. Our heavy dependence on property taxes could have allowed us to climate earlier storms just like the Nice Recession; however work at home and falling industrial property values has made it unsustainable. Town administration initially downplayed that report and attacked its credibility, even after submitting a house rule petition, as “false data” and that, “town shouldn’t be dealing with a billion greenback shortfall.” As we speak, they report we’re on monitor for his or her revised worst case eventualities.
I proceed to consider that the administration’s plan shouldn’t be the suitable resolution, and exacerbating present points in an already struggling trade would make Boston a much less fascinating place to dwell and conduct enterprise, and additional drive down property values and our tax base. Cities are rising or they’re dying. It’s a advantageous line, and we have to proceed with warning.
For years, I known as for the institution of a Blue-Ribbon Fee made up of enterprise leaders, labor leaders, authorities officers, related consultants and neighborhood organizations to handle this concern of Downtown Boston workplace vacancies and our income issues. I additionally known as for a evaluate of the Fee In Lieu of Taxes (PILOT) Program with giant nonprofits within the Metropolis of Boston. Our schools, universities, and hospitals are crown jewels for town when it comes to the employment, analysis, care and providers they supply; nevertheless, they now soak up over 50% of our metropolis and proceed to develop. This was merely an unsustainable components even previous to our latest income issues.
Through the funds course of in Could 2024, the Better Boston Chamber of Commerce famous that when Mayor Menino’s administration carried out their tax shift, which the present laws relies on, they exercised restraint with a modest funds enhance of 0.55%, whereas being pressured to eradicate tons of of positions, together with a hiring freeze. At the moment, the Chamber of Commerce cautioned that 8% funds progress, whereas additionally growing the industrial tax burden, would exacerbate these points for already struggling downtown companies. The Boston Municipal Analysis Bureau provided their very own suggestions, together with tapping town’s reserve funds, controlling the funds and college spending, reviewing worker ranges, income diversification, surplus property, and growing the residential exemption.
Within the last evaluation, it’s not too late to hearken to them, reverse course, and collaborate over espresso with State Home colleagues on measures that would present tax aid for residents. It’s essential to notice the important management of the Massachusetts State Senate, who shouldn’t be blamed for the monetary challenges of town. Boston works finest once we work collectively.
Ed Flynn is a Boston Metropolis Councilor representing District 2
