Boston's $4.3 billion, or 88% growth in taxable valuation for fiscal 2017 is favorable, said Moody's Investors Service.
"The growth, which reflects new construction projects throughout the city, is credit positive for Boston, allowing it to generate higher property tax revenue," Moody's said in a report.
The city's 2017 spike from $2.3 billion converts to a 57% increase in the "new growth" tax levy to $74.7 million from $47.5 million the previous year. Proposition 2-1/2, the Massachusetts tax levy limit, enables a municipality to increase the levy up to 2.5% annually. Beyond the 2.5% is an additional increase based on the valuation of new construction subject to first-time taxation.
According to Moody's, Boston had 23% of the $18.2 billion new growth among cities and towns statewide. "The strong contribution reflects significant economic development initiatives in recent years and its importance to the regional economy," said Moody's, which rates Boston's general obligation bonds Aaa with a stable outlook. S&P Global Ratings rates them an equivalent AAA.
Boston's major completed construction projects include commercial developments in the Seaport District; the Longwood medical area and the New Balance Athletics Inc. headquarters in the Brighton neighborhood.
