Potential Impact of the Municipal Empowerment Act on Boston’s Finances

In the adopted FY26 budget, Boston expects to rely on property taxes for 71.7% of its general fund revenue. A bill filed by Governor Maura Healey’s administration could help incrementally decrease this dependency on property taxes. The Municipal Empowerment Act, which was first introduced by the Governor in January 2024 and refiled this year, would authorize local governments to collect additional revenues. In 2024, the Boston Municipal Research Bureau published a Special Report on the City’s reliance on property taxes, potential ways to diversify Boston’s revenue mix and factors to consider when doing so, including the potential impact of the Municipal Empowerment Act. This report analyzes some of the key provisions of the Municipal Empowerment Act that could impact Boston’s finances, including the impact of excise tax changes on City revenue as well as the creation of a commission to evaluate other post-employment benefits.

To learn more about the potential impact of this legislation on Boston’s finances, read our full Research Update here: