Boston wins tax fight against National Grid

By Casey Ross, Globe Staff

Boston tax officials have won a seven-year tax fight against National Grid after a state panel rejected the utility's claim that it was owed about $16 million in refunds because the city had overvalued its property holdings.

The decision by the state's Appellate Tax Board could have broad cost implications for the power company and other utilities because it validates Boston's method of assessing National Grid's property at a higher market rate. National Grid had argued its property should be valued at a lower rate, based on the price it paid when it first made the purchase.

"This is a significant victory for the city, not only for the fact that no refund was given, but also because it endorsed our assessment methodology," said Ron Rakow, Boston's chief of assessing.

Many other communities in Massachusetts currently assess National Grid's property at the lower value favored by the utility, and could be emboldened to increase the firm's tax bills as a result of the decision. Had it lost the case, Boston would have been forced to refund about $16 million to National Grid, based on claims the utility made from fiscal years 2004 through 2010.

A spokeswoman for National Grid had no immediate comment today.