Boston Council Explores $15 Million Relief Fund as Property Tax Debate Stalls

BOSTON — October 17, 2024 — Boston City Council committee examines $15 million relief fund and surcharge options as property tax debate drags on. The Committee on Ways and Means held a virtual hearing Thursday on Docket 1445, proposing $15 million in annual residential tax relief, and Docket 1512, which would redirect state surcharges toward homeowners — alternatives to Mayor Michelle Wu's stalled Home Rule petition to shift the city's tax burden from residents to commercial property. Councilor Edward M. Flynn, the lead sponsor, cited a city fund balance of roughly $1.186 billion as of FY23 — about 29 percent of GAAP operating expenditures against a 15 percent target — and called for surplus funds above $1 billion in reserves to be returned to the budget. Flynn also referenced a joint study projecting that downtown office vacancies could reduce city tax revenues by up to $1.5 billion over five years. Chair Liz Breadon urged state negotiators to settle on a 185 percent commercial tax rate, a figure she said emerged as a compromise during spring hearings, noting the mayor has already moved from 200 percent to 190 percent in talks with the House.