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Talks on Boston’s tax law continue, but concerns remain – NBC Boston
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Talks on Boston’s tax law continue, but concerns remain – NBC Boston

The City of Boston’s attempt to temporarily shift some of its property tax burden to businesses, approved by the House of Representatives, continues to stall in the Senate. The top Democrat has expressed doubts about support for the bill, and lawmakers were noticeably muted in their response this week to an informal State House News Service poll asking them what they thought about the bill.

Boston Mayor Michelle Wu has called her plan, which has received widespread media attention since it was unveiled in April, necessary to avoid a potential 33 percent increase in residential taxes. But South Boston Senator Nick Collins on Thursday pointed to the city’s ample reserves as a way to smooth the tax burden and said he had heard “a great deal of opposition” to the mayor’s idea.

Despite being given 48 hours to comment on the bill during the busy August recess, only nine of 40 senators or their staff responded to the News Service’s request for comment asking whether lawmakers support a temporary change in Boston’s tax rates or if they have concerns about the bill.

Three of those nine respondents said there were “concerns” about the home rule request, two indicated they were open to reviewing the proposal, and Senate President Karen Spilka’s office issued a new statement saying she was “open to further discussions” with City Hall.

Three offices, namely those of Senators John Cronin, Pavel Payano and Michael Rodrigues, declined to comment on the bill when asked by the News Service. Rodrigues is chairman of the Appropriations Committee, which has been responsible for the proposal since August 5.

The city’s tax revenues have declined in recent years as more office buildings sit vacant in the wake of the pandemic. Mayor Wu has a plan to protect homeowners from a hefty tax hike, but that means more of the burden will be shifted to commercial property owners. Follow NBC10 Boston on… Instagram: instagram.com/nbc10boston TikTok: tiktok.com/@nbc10boston Facebook: facebook.com/NBC10Boston X: twitter.com/NBC10Boston

The lack of response to the News Service poll, which allowed two days for responses, could indicate that senators are undecided on the issue or that they do not want to get involved in a local issue that has escalated into a war of words between Wu and Spilka. But the silence in most offices could also be a symptom of the traditional August vacation month for lawmakers.

Wu sharply criticized the Senate earlier this month on Boston Public Radio on Boston station WGBH, saying that if the bill is not passed, “every single resident of the city of Boston will know that their taxes are going up because the Senate did not pass this final step.”

A spokesman for Spilka countered with sharp criticism of the bill: “Blaming the Senate may be politically convenient for the mayor, but it does nothing to improve a policy proposal that has been widely questioned by financial regulators and could cause serious harm to Boston’s economy.”

The president had “received no indication that there was sufficient support among senators to advance this policy proposal,” the spokesman said at the time.

During the period of informal sessions after July, “sufficient” support can generally mean that a bill can pass without a single member objecting to its progress. On the other hand, few senators attend informal sessions because they usually take place without a quorum.

Collins, one of three who expressed reservations about moving forward with the bill, cited concerns from the business community.

“We’re still hearing a lot of concerns that the legislation hasn’t changed and that there’s so much resistance from the retail, business and the general public,” Collins said Thursday. “According to Moody’s, taxes are being raised while Boston’s reserves are twice as high as they need to be.”

Senator Michael Barrett of Lexington “has serious concerns about the bill,” his communications director Ethan Raye told the News Service.

And Senate Minority Leader Bruce Tarr of Gloucester “has concerns about this issue,” said communications director Jessica Margiotta.

In a new statement this week, Spilka’s spokesperson said, “Mayor Wu and the Senate President discussed the proposal last week. The Senate President and the Senate are committed to creating good and smart policy and remain open to further discussions with the City of Boston and other stakeholders to that end.”

The motion was presented to the City Council for consideration on April 1, referred to the Council’s Governmental Affairs Committee on June 5, and passed the same day by a vote of 8 to 4. It was introduced to the House on June 18 by Assemblyman Rob Consalvo of Hyde Park as H 4805 and received no co-signatories.

“I want to stress that we are not trying to increase the taxes that businesses have to pay,” Wu told the Joint Revenue Committee at a hearing in the State House in mid-July. “Overall, corporate taxes will still go down under the proposal we are putting before you. But we are making sure that they do not go down as much as they otherwise would, because we also do not want taxes for residents to go up as much as they otherwise would.”

The Finance Committee advanced the bill on July 25, but co-chair Sen. Susan Moran has refused to discuss it or her position for weeks. Aides said earlier this month that she was unavailable for an interview. Moran did not respond to The News Service’s survey.

A revised version was presented by the House Budget Committee and passed the House on July 30, the penultimate day of official sessions, by a near-party-line vote of 133 to 24. In the Senate, Democrats hold 36 seats and Republicans four.

The proposal stalled in the Senate, and Spilka used it as evidence in a dispute with House Speaker Ronald Mariano over priorities in the closing stages of the session.

Parts of Boston are represented in the Senate by Senators Liz Miranda, Lydia Edwards, Michael Rush, William Brownsberger, Sal DiDomenico and Collins. None of the five other Boston senators responded to the News Service within the two-day deadline. Edwards is currently undergoing training with the National Guard.

Senator Patricia Jehlen of Somerville was one of two senators who made open-minded or optimistic comments about Boston’s attempt to lower its tax rates.

“I support communities in finding means to address the unique issues they face,” Jehlen said. “I hope a solution can be found that meets the needs of homeowners, businesses and the city.”

Senator Michael Moore said he supported the concept of local free will but was reluctant to make a “judgment.”

“Given the ongoing uncertainty surrounding the exact details of the City of Boston’s home rule motion and Mayor Michelle Wu’s handwritten commitments to change its implementation, I will reserve judgment until this bill is introduced in the Senate. That being said, I believe communities should have the opportunity to make policy changes that are best for them. If the community has pushed this policy through its usual legislative process, I see no reason why the state government should stand in their way,” said the Millbury Democrat.

Boston

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