Mayor's Property Tax Relief Proposal: What to Know

BOSTON, MA — By now, you've hopefully heard about Mayor Marty Walsh's to increase Boston's residential property tax exemption. We're here to answer the pressing question, not just what it means, but what it means for you.

First, a quick primer.

According to the mayor's office, this is the first time the city has upped its exemption since 2000. It's stated goal is to support the city's middle-class, and to keep Boston competitive with other communities. It reduces certain property tax bills and increases the residential tax exemption to 35 percent.

If passed by the City Council, here are the questions you should be asking.

Will I directly benefit from this?

Yes, if you own and live in your home as your principal residences.

I qualify for the tax exemption. What does that mean?

In total, qualifying homeowners will save $2,435 on their property tax bill by qualifying for the exemption.

And what does it mean for my tax bill?

The proposal would reduce average property tax bills for single family, owner-occupied residences by $299, from $3,533 to $3,234, the mayor's office said. In another example, the city councilor who filed the residential exemption proposal in City Council told the Boston Globe that, as owner of a two-family house, he could see his tax bill go down by around $150.

Does it matter how much my home is valued at?

According to the city's chief financial officer, as paraphrased in the Boston Globe, "The law does not allow the city to charge different rates for properties with different values, but all homeowners receive the same exemption, so that middle- and lower-income homeowners in effect receive a higher break by percentage, he added." The proposal comes, as Boston’s assessing commissioner told the Globe, as the city sees "significant increases in assessed valuations, driven by rapidly appreciating property values."

So, when will I see this on my tax bill?

If Walsh gets his wish and pushes this through the Council before the new year, it will be reflected in third quarter tax bills (which are sent out at the end of the year). Fiscal Year 2017 assessments are based on values as of January 1, 2016 (hence the haste in passing it).

More information about the residential tax exemption (and how to apply for it) is available online here, and you can read more from the Globe here.

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