Diversifying Boston’s Revenue

Should the City Try to Become Less Reliant on Property Tax?

The share of Boston’s operating revenue coming from property tax has risen dramatically over the last two decades from 55.9% in FY06 to 71.1% budgeted in FY25. What caused this change? What would be needed to diversify Boston’s revenue mix? What revenue sources could reduce Boston’s reliance on the property tax? What limitations could hamper the City’s ability to diversify its revenue? Should the City pursue revenue diversification?

Report Objectives

This report provides information and insights on:

• Boston’s current revenue structure
• Changes to Boston’s revenue mix over time
• Property tax advantages and disadvantages
• Considerations when diversifying revenue
• Alternative revenue options

Read the full report here>