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Councilors clashed over process in recent days but ultimately advanced Wu’s plan. It would hike commercial tax rates to prevent homeowners from seeing a large spike in their taxes.

As the Wu administration works to gain approval for a plan that would temporarily increase commercial property tax rates to prevent a large tax hike for residents, Boston City Council members overwhelmingly voted Wednesday to pass a new iteration of the proposal. 

Mayor Michelle Wu’s initial plan was filed back in April, and the City Council passed it in June. The support of lawmakers on Beacon Hill was still needed, and Wu struck a compromise with leaders in the House of Representatives before the legislation stalled in the Senate. Wu hashed out another deal with business leaders and fiscal watchdog groups who had previously opposed the measure last week, and the mayor quickly filed a new home rule petition with the City Council.

But Councilor Ed Flynn delayed an immediate vote, causing the body to hold an emergency special meeting last Friday and a hearing on Tuesday. Much of the discussion during Tuesday’s hearing and Wednesday’s regular City Council meeting centered on the timeline of the new proposal’s passage and the process behind it. 

Wu is up against a late November deadline, when the city will need to finalize tax rates and so that property tax bills can be sent out at the beginning of the new year. With Wednesday’s vote, the legislation heads back to Beacon Hill. 

Without the plan, city officials say residential property owners could be looking at a 28% increase in their tax bills in January, and the possibility of a 14% property tax spike year over year. Residential property taxes would still increase with the proposal, but Wu says she is working to make this spike as small as possible for homeowners. On the other side, commercial property owners would still see a decrease in their taxes regardless of the legislation’s fate. This drop would just not be as significant if Wu’s plan is ultimately approved by the Legislature and Gov. Maura Healey. 

The situation is largely the result of the pandemic-fueled shift to remote work that led to high office vacancy rates. Commercial property values fell, and residential real estate values rose. About 71% of the city’s budget is funded by property taxes, so residential property owners will need to pay more to make up the difference. 

On Wednesday, 12 councilors voted in favor of passing the measure, while only Flynn voted against it. Councilors John FitzGerald, Erin Murphy, and Brian Worrell voted against the first version of Wu’s proposal in June. Councilor Julia Mejia voted “present” last time. All four came around to favor the new version. 

Flynn has become a more vocal critic of Wu this year, and he is considering a run against Wu when she seeks reelection next year. Flynn said that the City Council “rushed” the process and criticized the Wu administration for not considering other options. The city should have cut spending, implemented a hiring freeze, and looked into using surplus funds to address the issue, he said. 

“In times of great crisis, strong leadership can never be about pride of authorship. We can’t let ideology cloud our judgment when it comes to what’s best for the city of Boston,” Flynn said. “It did not have to be this divisive, pitting residents against businesses or public disagreements with the state and business community.”

Many other councilors used their time to push back on the assertion that the process has been rushed. 

“This is the process. This is democracy. This is what we have all been elected to do,” Councilor Gabriela Coletta Zapata, who oversaw Tuesday’s hearing, said. “I was hearing overwhelming support from colleagues and the public, and then, any objections for this particular proposal would have been entertained. But the objections were not on the merits of this proposal, it was about any perceived bureaucratic or political slights.”

FitzGerald said that he “cast some concern” over which way to vote on the measure before Wednesday’s meeting. While he ultimately ended up voting in favor, FitzGerald struck a cautious tone. He worried about the long-term effects on the business community and said that many residents will still struggle to pay their taxes even if the plan is implemented. He said that officials should look into increasing tax exemptions for residents, seniors, and veterans. They should also examine the necessity of budget cuts and find ways to make the city less reliant on property tax revenue. 

“Let’s not act like we’ve cleared a major hurdle,” FitzGerald said.