A legal battle may be brewing in Boston over what some are calling retaliatory tax hikes against commercial property owners. The Pioneer New England Legal Foundation (PNELF) has accused the city of quietly increasing assessed property values — in some cases by millions — specifically for owners who appealed their property tax bills.
The group says the city failed to notify property owners of these changes, and that the altered assessments are being used to demand higher tax payments before an appeal can even be processed.
In a letter to the Massachusetts Commissioner of Revenue, PNELF called on the state to stop what it terms an “unlawful assessment practice” and issue tax refunds to impacted parties. If no action is taken, the organization says it’s ready to file a lawsuit within 30 days.
While Massachusetts tax law does require taxpayers to pay disputed taxes during an appeal, PNELF contends that the city is using this rule to deter appeals — penalizing those who legally challenge their assessments. According to PNELF President Frank Bailey, “They are being penalized for taking an appeal, which looks like retribution.”
Tax advisor Dan Swift, who works with affected property owners, noted discrepancies between what was officially assessed and what internal records showed. He says these unnoted adjustments — sometimes labeled as Appellate Tax Board penalties — are not clearly documented on public records, raising transparency concerns.
Among the buildings cited in the letter are 125 High Street (owned by Tishman Speyer) and One Post Office Square (owned by Morgan Stanley), both of which reportedly had their property values quietly increased.
While most of the affected buildings are commercial, residential properties are also seeing similar changes, according to legal and tax experts. Bailey argues that the city’s approach could hurt Boston’s competitiveness and burden both property owners and tenants.
“This is about the issue of fairness,” Bailey said. “The city can’t charge more than what something’s actually worth.”
PNELF claims the city’s actions violate state tax law and constitutional protections, including the right to petition the courts. The foundation is requesting that Boston halt these practices immediately and make restitution to taxpayers.
Source:
Shavit, M. (2025, June 27). City property assessments questioned, accused of secrecy and retaliation. Boston Business Journal. Retrieved July 15, 2025, from https://www.bizjournals.com/boston/news/2025/06/27/city-property-assessments-questioned-accused-of-s.html