PNELF: Boston Imposes Hidden Tax Penalty on Commercial Property Owners Who Appeal Assessments

Boston — June 24, 2025 — The Pioneer New England Legal Foundation (PNELF) has sent a formal notice to Massachusetts Department of Revenue Commissioner Geoffrey Snyder asserting that the City of Boston is unlawfully retaliating against commercial real estate owners who seek to challenge their tax assessments.

According to PNELF, the city’s Assessing Department has been quietly and systematically increasing property tax assessments on commercial properties that are under appeal at the Commonwealth’s Appellate Tax Board (ATB), imposing what amounts to a financial penalty on taxpayers who exercise their statutory rights under Massachusetts law.

“This practice is unauthorized and unconstitutional,” said PNELF President Frank J. Bailey, PNELF President and retired judge of the U.S. Bankruptcy Court for the District of Massachusetts. “Targeting property owners for higher assessments simply because they filed an appeal, the city is punishing people for seeking redress through lawful channels. That’s retaliation—plain and simple—and a violation of fundamental constitutional protections.”

Appeals Secretly Trigger Substantial Tax Hikes

In its letter, PNELF describes how Boston has quietly overridden its own commercial property valuations, increasing assessments by in some cases millions of dollars in the fiscal year after a taxpayer files an appeal. These overrides are not disclosed on tax bills or public notices. Instead, internal property record cards obtained by affected taxpayers reveal notations such as “ATB dispute” or “override. open appeal.”

PNELF’s investigation also found instances in which the city has removed these internal references before releasing final public versions of the records—effectively concealing its actions.

“These added assessments are not based on market conditions or improvements to the properties,” Bailey explained. “They are based solely on the fact that the taxpayer is exercising their legal right to challenge an overvaluation. That is illegal under both state law and the federal and Massachusetts Constitutions.”

Legal Context: A Violation of Rights

Massachusetts law (G.L. c. 59, §§ 59, 64–65) allows taxpayers to appeal local tax assessments to the Appellate Tax Board. To do so, they must first pay the full assessed tax—even if they believe the valuation is inflated. As PNELF notes, the appeal process can take years to resolve. During that time, the City has been quietly increasing assessments on the same properties.

According to the letter, this practice violates:

• Due process and the right to petition for redress of grievances under the First Amendment and Articles XI and XIX of the Massachusetts Declaration of Rights.

• The constitutional requirement of proportional taxation (Article X of the Massachusetts Declaration of Rights and Article CXII of the Amendments).

• The statutory requirement that property be taxed based on “fair cash value” (G.L. c. 59, §§ 2A, 38, 52), meaning its true market value—not an arbitrary increase related to litigation status.

“This is a deliberate abuse of governmental authority to suppress legitimate legal claims,” Bailey said.

Post-Pandemic Market Still in Decline

The timing of Boston’s punitive assessment strategy is especially troubling given the continued decline of commercial property values in the wake of the pandemic. Even after reducing some valuations by approximately 10 percent, the city’s assessed values remain significantly above actual fair market value, according to owners and market analysts.

PNELF Demands State Action—or Will Pursue Legal Relief

PNELF calls on the commissioner of revenue to immediately investigate the city’s conduct under his statutory authority (G.L. c. 58, § 1A) and to order Boston to cease the practice and refund affected taxpayers.

If the Department of Revenue or the city fail to act within 30 days, PNELF is prepared to seek judicial relief, including injunctive and declaratory actions under Massachusetts law (G.L. c. 249, § 5), as well as other constitutional remedies.

“This issue affects not only the rule of law, but the integrity of the Commonwealth’s tax system,” Bailey said. “Boston’s current conduct sets a dangerous precedent—one that could chill the willingness of taxpayers across Massachusetts to lawfully dispute unfair tax burdens.”

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About Pioneer New England Legal Foundation:

Pioneer New England Legal Foundation (PNELF) is a nonprofit, nonpartisan legal research and litigation entity, organized under Section 501(c)(3) of the Internal Revenue Code. PNELF is a public-interest law firm that defends and promotes educational options, accountable government and economic opportunity across the Northeast and around the country. Through legal action and public education, PNELF works to preserve and enhance liberties grounded in the constitutions and civil rights laws of the United States and the individual New England states.