After a delay, Boston Mayor Wu’s tax-shifting plan clears the House and moves to the Senate

Boston Mayor Michelle Wu took a break Monday while a Republican lawmaker was not there blocked her plan a two-fold increase in sales tax rates last week allowed the bill to pass the House and go to the Senate.

The bill was quickly approved by the House, a stark contrast to the drama that unfolded last Thursday and Friday when state Republican David DeCoste, doubting the presence of a quorum, used procedural tactics to end the legislation both days by calling at the same time, concerns about the impact the plan will have on the economy.

State Rep. Rob Consalvo, noting that he’s hearing from voters who are “anxiously waiting” for the bill to go into effect, said he spoke with DeCoste after his second objection last Fridaydescribing the conversation as “a very cordial conversation.”

“I was grateful that he took my call, and now I’m just excited that we can make progress,” Consalvo, who sponsored the House bill, told the Herald. “This is a good example of a good compromise. The Commission had reservations and their reservations were reflected in the compromise. The business community had reservations.

“I think the mayor has created a much better bill with the changes she has made,” he added, “and I am grateful that we were all able to work together to achieve that.”

But DeCoste told The Herald that if he were present, he would use the same procedural tactics to block the bill again. He announced that someone in his family had died and he was attending services.

A bill aimed at preventing a 28% quarterly January property tax increase for homeowners by allowing the city to shift more of the tax burden to businesses now heads to the Senate.

“It is the Senate President’s intention to bring this legislation to a vote on Monday, December 2, 2024, giving members of the Senate and the Wu administration one week to continue discussions,” Senate President Karen Spilka, a spokeswoman for the Senate president, said in a statement.

Mayor Wu expressed gratitude to the House for the legislative progress while looking forward to further action in the Senate, where an earlier version of her tax plan stalled.

“We look forward to continuing our work and conversations with the Senate to implement this consensus solution as quickly as possible to protect Bostonians from a potentially devastating tax increase,” Wu said in a statement.

Wu said the Legislature must act by the end of this month to allow the city to set tax rates and send bills in December.

The mayor’s plan takes into account changing work patterns in the wake of the pandemic, which have resulted in declining commercial property values ​​and vacant office space, shifting more of the city’s tax burden to the housing sector and straining the city’s budget, which relies on more than 70% of its revenue from property taxes.

Wu’s office provided data showing that without the new regulations, homeowners would be hit with a 28% quarterly tax increase and a 14% annual tax increase, which would bring those tax increases down to about 18% and 9%.

The plan, despite a compromise by four business leaders and fiscal watchdogs who have long opposed a tax change they say would be harmful to the economy, remains a source of concern.

Critics have pointed to the mayor’s rejection of calls to cut the city’s $4.6 billion budget, which has grown 8% this fiscal year, while arguing that the plan will further damage an already struggling commercial sector.

All eyes are now on the Senate, the chamber that has been more skeptical of the plan. Republican Sen. Ryan Fattman did not specifically say Monday whether Republicans in that division also plan to further delay the bill.

“We’ll see,” Fattman told reporters. “I’ve heard a lot of concerns. Many people contacted us. Actually, surprisingly, some of my constituents have business interests in Boston. You know, Boston is a little bit unique in that it’s not your typical local government petition. It affects a lot of people.”

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

These concerns were evident shortly after the House approved the bill. The Massachusetts Fiscal Alliance and the Small Property Owners Association quickly issued statements sharply criticizing the legislative action. A petition with signatures from business representatives had also circulated earlier, calling on the legislature to reject the bill.