Massachusetts Supreme Court Upholds Property Tax Assessment on Transportation Authority Advertising Signs

The Massachusetts Supreme Judicial Court upheld a property tax assessment on Outfront Media LLC for its use of Massachusetts Bay Transportation Authority (MBTA) outdoor advertising signs under its contract with the MBTA. The Court found that Outfront’s exclusive right to sell advertising on MBTA signs and retain profits above guaranteed minimum payments constituted “use” of the property “in connection with a business conducted for profit” under the tax law, making the signs taxable to Outfront as if it were the owner. The Court distinguished Outfront’s advertising business from service providers to the MBTA like janitors, reasoning that Outfront exercised significant ...