Special to the Regional Review
Boston City Councilor Gabriela Coletta Zapata chaired a hearing on July 9, to discuss an ordinance to adopt the small commercial tax exemption as a local option in the City of Boston. The Councilor’s proposal would allow the City of Boston to opt into the existing state law and provide financial relief for small businesses valued under a million dollars or with ten employees or less.
Those in attendance included Councilors At-Large Ruthzee Louijeune, Henry Santana, Julia Mejia, Councilors Ben Weber, John Fitzgerald, Brian Worrell, Ed Flynn, Sharon Durkan, Tania Fernandes Anderson, and Enrique Pepén. “This ordinance comes after numerous conversations my colleagues, the administration, and I had earlier this Spring regarding tax classification in the City of Boston and finding additional pathways to support small businesses.
This is one way to get a little bit more money in the pocket of mom-and-pop stores by giving them certain exemptions and protecting them from the cost burden shifting to them.,” said Councilor Gabriela Coletta Zapata. “I’m grateful for the robust conversation we had and the various perspectives shared. I look forward to continuing the conversation to ensure we work collaboratively to assist small businesses and mom and pop stores like restaurants, corner stores, laundromats, and barber shops from potential impacts the new tax levy may have.”
During the hearing, Councilors discussed the proposal specifically potential measures for quantifying success of the exemption, collaboration within various city departments to ensure adequate and effective communication and outreach for small businesses, and protections for small business tenants. Councilors requested additional information on the average increase on commercial and industrial property if the exemption was baked into the annual tax rate, projected impacts, and a roll out plan if the exemption is enacted. In addition to the ordinance, Councilors discussed the possibility of amending Massachusetts General Law Chapter 59 Section 5I for a specific Boston statute that would allow for businesses valued over a million dollars to opt in.
Coletta Zapata noted that she is interested in understanding the implications of increasing the stipulations between two to three million dollars to cast a wider net for properties. Additionally, Councilors heard testimony from small business owners and representatives including Jessica Muradian, Director of Government Affairs for the Massachusetts Restaurant Association, and Carlos Castillo of Castillo Wine & Spirits and Board Member, Massachusetts Package Stores Association. Public testimony was offered by Brad Brown, owner of the Blue Frog Bakery in Jamaica Plain.
Coletta Zapata’s proposal comes after the Boston City Council voted for a Home Rule Petition regarding property tax classification in the City of Boston sponsored by Mayor Michelle Wu. Mayor Wu sponsored the Home Rule Petition as a temporary tool to protect residents from property tax increases to mitigate potential revenue shortfalls from declining commercial valuations. The Home Rule Petition is now awaiting approval from the State Legislature before it can take effect. For additional information, please contact the Office of Councilor Gabriela Coletta Zapata by phone at (617) 635-3200 or by email at [email protected].