B
oston Mayor Michelle Wu is reviving her proposal to raise commercial property taxes, introducing an updated version of legislation that would increase the cap on these taxes for three years. This move aims to limit tax increases on residential properties and mitigate budget cuts, but could harm commercial real estate landlords already struggling to make their properties economically viable.

    Wu's latest plan includes offering residential tax rebates from surplus city funds if lawmakers fail to pass the proposed rate changes. The proposal needs approval from the City Council, state Legislature, and Gov. Maura Healey. Wu previously estimated that the average homeowner would see a 10.5% increase in their annual tax bill, but her new proposal suggests this could be closer to 15%.

    The timing of the proposal is significant, as tax bills were recently mailed out to residents for the third quarter. If passed by the end of March, Wu claims residents could see savings for the fiscal year ending in June. This is not the first time Wu has attempted to raise commercial property taxes, having previously failed to pass a similar measure last month.