Worcester Business Journal

wbjournal.com | January 26, 2026 | Worcester Business Journal 7 sell said. "When the business community talks about an equal tax rate, or moving the rate sort of closer to the equal tax rate, they always make the argument for the small businesses," Russell said. "In reality, it's the large businesses that you know that are the ones that would most- ly benefit if you made it more equal." Worcester implementing an exemp- tion would increase the tax burden on non-small-business commercial properties, and the relief brought by the exemption allowed under state law is unlikely to be enough to save a small business drowning in debt. Still, with Worcester losing multiple prominent small businesses since 2024, including Redemption Rock Brewing, Maker to Main grocery store, and e Queen's Cups bakery, an exemption could serve as a useful tool in the tool- box to provide some measure of relief. Pointing to the large tax breaks given to Worcester developers, Lynn Cheney, former owner of Maker-to-Main, argued small businesses need that same level of support. "If we're looking to try to attract and keep and retain small businesses in the city of Worcester, why isn't there a more level playing field?," Cheney said. Providing substantial relief Some Worcester small businesses own their own properties. Others have triple-net leases, where they are on the hook for their share of the property tax. Even if the business isn't responsible for property taxes, it's most certainly baked into the rent. If Worcester implemented the small business tax exemption, a property with an assessed value of $999,999 would see yearly savings of about $2,906 under the current tax rate. While better than nothing, Cheney said even the maximum possible ex- emption wouldn't be a gamechanger for most small businesses. "Every penny counts in savings, but $2,900 doesn't even help me with one month's rent at either of my former locations," she said. e exemption would be much more effective if it was updated to adjust for the modern realities of running a small business, Kalogeropoulos said. He suggests the tax break should be raised from 10% to 15%, the maximum prop- erty valuation should increase from $1 million to $2.5 million, and the cap on employees should go from 10 workers to 25. Municipalities like Worcester have the choice to opt-in to the exemption each year while setting their tax rates. To increase the tax savings beyond what's in the state law, local govern- ments can file a home rule petition to set their own parameters. At the town meeting in May, Auburn voters approved a petition to the legis- lature to raise the maximum property value to $5 million and the maximum number of employees to 25. Kalogeropoulos said he expects at least three or four more prominent small businesses in Worcester will close in the coming months due to the impact of taxes and other market conditions in Worcester. He challenged the Worcester city council to provide some relief now before it is too late. "ey all love ribbon cuttings," he said. "When Maker-to-Main came to the Ca- nal District, they were all here. But guess how many of them came down when she went out of business? Zero." W Small business, small tax break Berlin and Auburn are the two Central Massachusetts communities that adopted the small business tax exemption, which reduces yearly tax bills by a relatively small amount. 2026 Maximum commercal yearly tax rate amount Municipality (per $1,000) saved Auburn $15.83 $1,583.14 Berlin $21.13 $2,113.18 Worcester* $29.06 $2,906.26 * = If implemented with current tax rate Note: Calculations made assuming a property value of $999,999 Sources: Municipal assessor websites "If we're looking to try to attract and keep and retain small businesses in the city of Worcester, why isn't there a more level playing field?" Lynn Cheney, former owner of Maker-to-Main Highest commercial taxes in Central Massachusetts Worcester has the eighth highest commercial property tax rate in the state. Commercial tax rate Municipality (per $1,000 of assessed value) Worcester $29.06 Hudson $27.99 Ayer $25.20 Framingham $23.97 Milford $23.11 Littleton $21.93 Clinton $21.58 Sudbury $21.54 Berlin $21.13 Marlborough $18.43 STATEWIDE AVERAGE $15.17 Source: Massachusetts Department of Revenue

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