Reagan v. Commissioner of RevenueAnnotate this Case
The Supreme Judicial Court held that when an otherwise qualifying entity sells an urban redevelopment project during the forty-year tax window set forth in Mass. Gen. Laws ch. 121A, 18C, the tax concession extends to the capital gain from the sale.
The tax exemption at issue provides an incentive for private entities to invest in constructing, operating, and maintaining urban redevelopment projects in deteriorated areas. At issue was whether the sale of an urban redevelopment project during the forty-year tax-exempt window is "on account of" the project, thus extending the tax concession to the capital gain from the sale. In this case, the Commission of Revenue issued notice of assessment to Appellants related to their capital gains from the sales of certain ch. 121A projects. The Supreme Judicial Court reversed, holding that the capital gain from the sale of the ch. 121A project fell within the tax concession.