Mayor Wu’s hard line on property taxes doesn’t make political or economic sense

?? Welcome to Trendlines. The secret word is "Ringo."

I'm Boston Globe Media financial columnist Larry Edelman, and today I look at Boston Mayor Michelle Wu's resistance to a compromise on her plan to boost commercial property tax rates.

Plus: "Brrrr."

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Hard line

??? The news

To the bafflement of many on Beacon Hill and in the business community, Boston Mayor Michelle Wu Wednesday made clear once again she wasn’t interested in modifying the bill she filed with the Legislature in April to help the city offset the decline in commercial real estate values.

The legislation has stalled amid opposition by business groups and skeptical state senators who think City Hall should share the financial pain of property owners by also reducing spending or tapping reserves to balance its budget.

• Such moves “would be very financially irresponsible,” Wu told reporters in a virtual briefing from Moon Island, where she was attending a Boston firefighters event. It’s a message she recently delivered behind closed doors to lawmakers and business leaders.

?? The reaction

Business leaders said they’re not asking the city to come up with the entire $265 million. Instead, they are pushing for a package of changes that would soften the blow on commercial landlords and still provide relief for homeowners.

“We need to piece a solution together,” said James Rooney, chief executive of the Greater Boston Chamber of Commerce.?

? Recap

High vacancy rates have eroded the value of office buildings and other business properties. The decline threatens to throw Boston’s operating budget out of whack.

• Commercial real estate taxes, which are pegged to assessed values, account for about 40 percent of its revenue.

?? New numbers

At her briefing, Wu said that based on the latest assessment data, residential tax bills would increase an average of 14 percent compared with the fiscal year ended in July without approval of her plan, and 5 percent if she gets the green light from lawmakers.

?? Final thought

For the average Boston home, which the city said is assessed at $838,000, the tax increase in the third and fourth quarters of 2025 compared with the first two quarters would be a total of $770 if Wu’s bill doesn’t pass, and $275 if it does.

Why is the mayor taking on Spilka — whose approval she also needs to complete the city’s takeover of the Boston Planning and Development Agency — over a change the city could afford?

“If you think that the only way forward is to be as uncompromising as possible,” Obama said, “you will feel good about yourself, you will enjoy a certain moral purity, but you’re not going to get what you want.”

Wise words for any politician.

?? Trending

Weather: An "absolutely staggering" Hurricane Milton clobbers Florida, leaving 3 million homes and businesses without power.

Economy: Inflation reaches its lowest point since February 2021, though price pressures remain.

Personal finance: Social Security recipients will get a 2.5 percent cost-of-living boost in 2025, smaller than in recent years.

?? The Closer

There are many tell-tale signs of my aging: joint replacements, multiple nocturnal visits to the en suite, never knowing where I put my phone.

But here’s a new one: waiting for the thermostat to drop below 68 so I can turn on the heat. The trigger used to be 65, but that's just too damn cold now.

Last night I put an extra blanket on the bed. There was a time I aimed to make it through October without turning on the furnace. I’m not sure I will make it to the weekend this year.

Thanks for reading. I will be back next Thursday, after the long holiday weekend. Enjoy.