Boston Mayor Michelle Wu directed neighborhood liaisons to reach out to residents as part of a last-ditch effort to stack a Thursday City Council hearing with positive testimony for her controversial proposal to increase commercial tax rates.
At the same time, Regan Communications, a public relations firm known for being critical of the mayor’s policies, was attempting to stack the deck with opponents from the business community, who testified against the legislation at the meeting.
“Tomorrow is an implicative day for residential property owners and renters in South Boston, relating to property taxes (could increase by 16.5% if not passed),” Lydia Polaski, the mayor’s South Boston neighborhood liaison, wrote in a Wednesday email to residents, obtained by the Herald.
“I’m sending this invitation in case you are interested in logging on to testify. Your voice matters. Your contribution can be as simple as, ‘I support the mayor’s tax classification shift to protect residents.’”
The email, perhaps identical to what may have been sent out by neighborhood liaisons in other parts of the city but which weren’t reviewed by the Herald, goes on to state that “we need your help to make sure this proposal is passed.”
It also prepped residents on a sample communication to convey to the City Council, which cited projections from a report issued by the Boston Municipal Research Bureau, a fiscal watchdog that found homeowners could be facing a 16.5% tax increase next year if the mayor’s petition does not pass.
“As a resident in Boston, I am voicing support of Mayor Michelle Wu’s home rule petition,” the suggested communication reads. “This important proposal will protect residents from drastic increases in our tax bills.
“Boston’s housing crisis is making it hard for residents to afford to stay in our city. If commercial values decline, that crisis could be exacerbated by a dramatic spike in residential taxes. Mayor Wu’s proposal will mitigate the impact of the financial pressure homeowners could face next year.”
Citing the Research Bureau’s projections, residents were also directed to center their comments around how the tax increase would impact housing affordability.
“An increase that significant and sudden would put many Boston families over the edge and force them to move out of the city. The City needs to have the tools in place to protect all residents—homeowners and renters,” the sample communication reads. “ Mayor Wu’s proposal is that tool. We urge the City Council to pass this legislation immediately to protect our residents.”
Residents and advocates largely stuck to the mayor’s script during a Thursday City Council hearing on her home rule petition, which seeks to tax businesses beyond the state limit for the next four years.
Much of the favorable testimony centered around doing nothing, in terms of the City Council and state lawmakers not approving the mayor’s plan, would exacerbate housing affordability in the city. The report’s projected tax increase would push homeowners out of the city, many residents and advocates said.
The proposal seeks to be responsive to declining commercial property values, which by lowering those properties’ contribution to the city’s tax base, would shift more of the burden onto residential property owners.
By comparison, Regan Communications sent out an email Wednesday as well, touting a critical report issued by the global tax consulting firm, Ryan, and written testimony submitted in opposition by business groups including the Back Bay Association.
Representatives from both Ryan and the Back Bay Association testified in opposition during the hearing.
“There is significant concern about this proposal to increase taxes on an industry already in crisis with commercial valuations plummeting,” an email from Sean Martin, vice president of Regan Communications, reads. “Increasing taxes on commercial landlords and their tenants only exacerbates the decline in commercial property values.
“This would be municipal malpractice. Small businesses, hotels, restaurants, retail, life sciences, technology, and other merchants and industries from East Boston to Mattapan will bear the brunt of the tax increases despite already facing additional expenses due to inflation, higher interest rates, and other market factors. Deep concern is being expressed by small business owners and neighborhood leaders.”
The day’s testimony prompted several councilors to remark on how the legislation was prompting an “us vs. them” dynamic with residents and businesses, and questions were raised about how to reach a compromise — one that would foster a “shared sacrifice” of property tax payment for both sides.
