Last spring, legislation was filed in the Massachusetts legislature allowing Mayor Michelle Wu to shift more of the city of Boston’s tax burden onto commercial properties. The bill proposed shifting the commercial rate from the currently allowed 175% to 200%. NFIB opposed this shift on behalf of small businesses that occupy commercial spaces in the city of Boston.

This proposal was jammed through the Massachusetts House on July 30^th, the day before the 2024 legislative session “ended”. It passed by a vote of 132 to 24. The Senate did not vote on the bill. This prompted Mayor Wu to renew her effort and sought a compromise from members of the business community during the summer months. The compromise plan was reconfigured to allow the state to shift the commercial rate to 181.5%, but NFIB continued to oppose the modified proposal and urged the Joint Committee on Revenue to reject the redrafted bill. Committee members instead voted to advance the legislation.

While Representative David DeCoste managed to temporarily hold up the bill in November, the House voted to pass the bill on November 25^th. It was then sent to the Senate where they opted not to act immediately. Senator Nick Collins requested city officials provide additional tax data justifying why the city of Boston needed the tax shift. Senators found the numbers originally being reported by city officials were exaggerated and now determined this proposal should not advance.

NFIB is pleased this tax shift that would have harmed Boston’s small businesses was defeated and can proudly tout our continuous opposition to every proposed tax shift bill. Additionally, this victory over higher commercial taxes will prevent copycat bills from being filed by other communities in the Commonwealth that would attempt to exceed the current 175% split rate.