Safeguarding Tax Concessions for Urban Redevelopment

On March 10, 2023, the Massachusetts Supreme Judicial Court reversed a decision of the state’s Appellate Tax Board, finding that a tax concession granted to the developers of urban redevelopment projects extends to the capital gains realized from the sale of those projects. The SJC had transferred the case on its own initiative from the Appeals Court. Pioneer Public Interest Law Center — then known as PioneerLegal — had submitted an amicus brief in the case.

Since the 1950s, Massachusetts has encouraged redevelopment of dilapidated properties under Chapter 121A of the state laws, which provides incentives for private investment. James J. Reagan, Jr. was the owner of three limited partnership interests — St. James Company, Blackstone Company, and Kenmore Abbey Limited Partnership — that invested more than $45 million over the last 40-plus years to transform abandoned or vacant properties in Boston into housing for the elderly and individuals with disabilities.

When Reagan and his wife, Irene M. Reagan, filed their 2012 state tax return, they took the position that the capital gains they had realized from the sales of the projects were exempt from tax because they were “on account of” those projects—in keeping with the language of Chapter 121A. The Reagans appealed their notice of assessment in July 2020. The SJC ruling found that the increased value of the properties was causally related to the project, and that extending the tax exemption to a capital gain from the sale of a Chapter 121A project is “buttressed by the statute as a whole.”

Massachusetts High Court Strikes Down Town’s Civility Code as Unconstitutional

BOSTON, March 7, 2023 — In an opinion that reinforces political speech rights at public meetings throughout the Commonwealth, the Supreme Judicial Court of Massachusetts has declared that Southborough’s civility code governing participation at public meetings violates Article 19 of the Massachusetts Constitution.

Article 19 protects core political speech rights—the right to assemble “in an orderly and peaceable manner. . . to consult upon the common good; give instructions to [the people’s] representatives,” and to request of the government “by way of addresses, petitions, or remonstrances, redress of the wrongs done them, and of the grievances they suffer.”

Exercising her Article 19 rights is just what appellant Louise Barron was attempting to do during the public comment portion of a Southborough town meeting when she was abruptly silenced and threatened with expulsion by town officials who claimed that her criticism of their repeated violations of the Open Meeting Law violated Southborough’s civility code.

“We are delighted that the court has made it absolutely clear that our democratic form of government was founded upon, and still depends upon, our right to freely and peaceably criticize our leaders, and to seek redress of our grievances, without fear of retribution or governmental restraints,” said PioneerLegal staff attorney Selena Fitanides.

The town’s code requires that “[a]ll remarks and dialogue in public meetings must be respectful and courteous, free of rude, personal or slanderous remarks,” and it warns that [i]nappropriate language . . . will not be tolerated.”

PioneerLegal filed a non-party amicus brief in the case last fall urging the court to rule that civility codes like Southborough’s constitute viewpoint discrimination and, therefore, violate the sacrosanct right to free political expression enshrined in the Massachusetts Constitution.

In a 29-page scholarly opinion, Justice Kafker agreed, writing that “[a]lthough civility can and should be encouraged in political discourse, it cannot be required.” According to our Constitution, “political speech must remain ‘uninhibited, robust, and wide-open.”

PioneerLegal President Frank J. Bailey reacted to the opinion as follows:

“We are convinced that the Barron decision, which marks a high-water mark in free speech rights in the Commonwealth, will have a nationwide impact on the rights of citizens to be heard by their elected officials. We also hope the United States Supreme Court will recognize those same rights in the federal Constitution when given an opportunity.”

PioneerLegal: Important Strides in Year One

In less than a year since our launch on June 1, 2022, PioneerLegal has made important strides to advance educational opportunities, free markets, and government accountability. Most recently, the Massachusetts Supreme Judicial Court ruled in our favor in a major free speech case, Barron vs. Kolenda.

I am pleased to share our inaugural newsletter, In Brief. Read, share with friends and colleagues, and share feedback with us.

Launching a new law firm is complicated, and we have many people to thank for their generosity. Sincere thanks to the team of lawyers at WilmerHale who prepared our launch, and firms like Sullivan, Morgan Lewis, and Hemenway & Barnes for their critical, pro bono case-related legal expertise.

On behalf of our Board of Directors and staff — Selena Fitanides, John LaLiberte, and myself — I hope you will continue to reaffirm your support  for PioneerLegal as we continue our work on educational choice, free markets, and government accountability.

With appreciation,
Frank J. Bailey
President, PioneerLegal

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Pioneer New England Legal Foundation is a non-partisan, public interest law firm that defends and promotes educational options, accountable government and economic opportunity across the Northeast. Pioneer New England Legal Foundation achieves its mission through legal research, amicus briefs, and litigation.