Mayor Wu unveils a property tax relief proposal with business backing to address Boston's residential tax hike.

Boston Mayor Michelle Wu and business leaders have reached a compromise that the mayor’s office says will provide a “path forward” for the city’s plan to raise commercial tax rates, by way of a lower shift of the tax burden on to businesses.

To avoid homeowners having to make up for the loss of commercial taxes, Mayor Michelle Wu proposed a higher percentage of the tax levy come from commercial property owners.

A small disagreement on money — and a hefty dose of mutual antipathy — could scuttle a compromise between Mayor Wu and business leaders on how much residential tax bills will rise.

Mayor Michelle Wu has drafted new legislation that includes a more “modest” shift of Boston’s tax burden onto businesses, beyond what’s allowed by state law, after reaching a tentative compromise

Boston Mayor Michelle Wu and business leaders reached a compromise Wednesday on a plan to temporarily increase commercial tax rates so that homeowners don't face sharp rate hikes down the road. Why it matters: The deal ends a months-long standoff between City Hall and business groups over how to balance the city's budget amid slumping office valuations.

With her existing proposal hung up on Beacon Hill, Boston Mayor Michelle Wu said Wednesday that she’s sending a new proposal to the State House that she believes will “stabilize property taxes and protect homeowners and renters from a dramatic spike.