Legal Question in Real Estate Law in Massachusetts

Property Tax

Hi Robert -

Thanks for writing in with your question.

In your question you refer to the tax as a "personal tax," I'm wondering whether this is in fact a property tax. In your dealings with the town, have the town officials characterized this tax as a "personal tax" (in which case the tax is somehow related to your company's use of the adjoining property for parking) or are you being asked to pay the property taxes for this parcel? The property tax for this land should be the responsibility of the owner of record - do you know who owns this piece of property? Or is the property owned by the city or town - if so then the city or town may well be entitled to collect some objectively reasonable amount for your company's use of town-owned or city-owned land.

Has anyone from the town informed you that to continue parking your company's trucks on that piece of property you must pay the tax - is this issue being presented to you in that way? Have you considered purchasing the property, do you have any interest in doing so?

One other question - what is the dollar amount of the tax that you are being asked to pay?

My name is Len Foy and I am an attorney with Gould & Gould, with offices in Methuen, MA and Londonderry, NH. I practice law in both Massachusetts and in New Hampshire. Robert, you are welcome to call our office at (603) 434-3437, there is no charge for an initial consultation. Or you can send me an email at [email protected].

I look forward to hearing from you and wish you success in resolving this matter with the town.

Regards -

Len Foy

Re: Tax

Hi, Robert:

There are two kinds of property tax in MA one for real estate and one for personal property (business). If they are taxing you on the real estate that raises an interesting question as to ownership of the property and your liability. If it is a tax on personal property related to your business that is something else. Generally, real estate taxes are paid by the owner unless otherwise agreed in writing between Lender and or Tenant.

You indicated you have been parking vehicles on this property for 25 years. Do you lease it? Have you permission to do it? Do you know the owner?

If you have used this property exclusively in an open and notorious manner (without permission) for more than 25 years you have a claim to the property by adverse possession and if the town is taxing you as the owner, that would re-enforce that position.

Please feel free to call me if you require clarification. I represent businesses and individuals around the Commonwealth.