Marc Levy A shopper looks at the shoe selection July 15 at Boomerangs in Cambridge’s Central Square.
The business community is really worried and pushing back against a 22 percent jump in property taxes, which is sure to stir up some heated comments and debate when officials meet Monday to set the rates. The usual City Council meeting will pause at 6:30 p. m. for the hearing, which used to be pretty routine.
While staff are suggesting residential rates go up by 5 percent-from $6.35 to $6.67 per thousand dollars of assessed value-commercial properties face a much steeper increase. Their rate would jump 22 percent, rising from $11.52 to $14.07. Commercial owners cover about two-thirds of the city’s tax revenue.
“We are beginning to experience tangible impacts of a changing macroeconomic environment and federal policies,” city manager Yi-An Huang wrote in his letter to council members. He also pointed out that “the levy increase for FY26 is lower than the previous levy increase,” with an overall 8 percent rise compared to last year’s 9.2 percent hike approved around this time, but last year’s commercial tax bump was smaller-from $10.46 to $11.52, just a 10.1 percent increase.
Katie Labrie, who leads small-business group Cambridge Local First, said she asked councillors to push back the discussion by one meeting using their “charter right” so members could properly review the policy and offer meaningful input.
Councillors have been getting letters asking them not to approve this big rate hike or at least talk more with local businesses before making a final decision.
Stuart Rothman from First Cambridge Realty wrote that this increase “would impose an untenable annual expense on my tenants and, by extension, threaten the economic stability of our local business community.” His company operates between Harvard and Central squares in Mid-Cambridge.
Patrick Barrett-a lawyer, developer, and business owner with interests in Central Square-called the proposed raise “shocking.”
The hike “is a burden we cannot bear and at the very least should have been notified of,” Barrett added.
Ted Galante, an architect who’s worked in Cambridge for nearly three decades, said he had plans for expanding his business until he saw these numbers. “Taxes are too high for businesses to support themselves,” he said. “We have found that current rents and expenses are very high, and barely allow growth for businesses like mine – and others. If you support higher taxes, our company will likely be in the position of having to leave Cambridge altogether.”
An actual city councillor sounded surprised by these numbers too.
“I was stunned,” councillor Patty Nolan said via public email and promised she’d ask questions during Monday’s hearing.
The City Council property tax rate classification hearing starts at 6:30 p. m., Monday at City Hall (795 Massachusetts Ave., Central Square). You can watch it live on TV or join via Zoom videoconferencing.
