Press Release: 12/15/2025

Boston Attempting to Shift More Tax Liability to Commercial Properties Again

 

December 12, 2025

Tax split bills are essentially a means to subvert the state’s Prop 2 1/2 property tax law.

Mayor Michelle Wu is seeking legislative approval to exceed the allowed split between commercial and residential property taxes in the city of Boston. In order to exceed the allowable 175% rate, it requires legislation approved by state lawmakers. For the second straight year, a proposal permitting this shift is stalled before the Massachusetts legislature.

NFIB continues to oppose the bill allowing the city of Boston to increase the residential/commercial split rate to 200% from 175%. This would set a bad precedent as other municipalities would also seek legislative authorization in response to their budgetary shortfalls. In 2024, a compromise was sought with the business community to allow a 181.5% rate set to decrease over a 5-year span, but that proposal was never finalized. NFIB submitted comments against the compromise language stating the shift would still harm small businesses in Boston further burdening them with higher property taxes.

It appears that an impasse between the House and Senate will prevent any further action on the 2025 tax split bill, but it is one we will continue to monitor. As municipalities seek new ways to raise revenue, these tax split bills are essentially a means to subvert the state’s Prop 2 1/2 property tax law.