Massachusetts Tax Board Rules on Taxpayer’s Boston Property Valuation Appeals

The Massachusetts Appellate Tax Board issued a decision in the appeals filed by the taxpayer against the Board of Assessors of the City of Boston regarding the valuation of an office/retail building in Boston. The appeals concerned the appropriate operating expenses and capitalization rate to use in an income capitalization approach to value the 258,924 square foot office/retail building constructed in 1927. After considering the evidence presented by the parties’ valuation experts, the Board adopted the operating expenses proposed by the appellant’s expert but selected its own capitalization rate of 8.75 percent, concluding the fair cash values for the relevant ...