Boston, MA - Last week, Boston’s Mayor, Michelle Wu, proposed an increase in commercial real estate taxes, a move that hits an industry already grappling with challenges. This proposal comes at a time when the Mayor is facing a daunting $1 billion shortfall in the coming years.

MassGOP Chairwoman, Amy Carnevale commented on the proposed tax hike stating, “This tax increase is counterintuitive, given that commercial real estate values are plummeting rapidly in the city, with many buildings remaining unutilized. Implementing a tax increase will only worsen the decline in commercial real estate values, leading to reduced tax revenue over time and a decline in the number of businesses operating in Boston. Rather than burdening businesses with higher taxes to fund the Mayor’s inflated budget, she should explore avenues for spending cuts and conduct a thorough assessment of the efficiency of city government.”

“In 2021, when Mayor Wu took office, Boston’s operating budget was at $3.61 billion. In just three years she has raised that budget to 4.22 billion. She alone has raised the operating budget by $600 million. Although Mayor Wu is largely responsible for this budget shortfall, she is conveying to Bostonians that the only options are either business tax increases or property tax hikes. Perhaps it’s time to acknowledge that if the city can’t afford something, they simply can’t afford it. Mayor Wu and the city of Boston need to tighten their belts to cover their own spending missteps, not look towards businesses and residents to bail them out,” Carnevale concluded.