Resident Denied Refund for Overpaid Taxes

If P.K. Shiu’s calculations are accurate, he has lost an estimated $6,000 over the past two years due to overpayment of property taxes on his South End loft. And he may not see that money again.

Shiu owns a studio loft at Laconia Lofts on Washington Street, a sought-after address that includes residential lofts as well as studio units for working artists. The artist spaces are taxed at a mix commercial rate, and are sold below market value to certified artists.

According to Shiu, who works as a web consultant, his residential studio has been mistakenly taxed at the mix commercial rate as well. In past years, lower market values and his residential exemption (he no longer lives in the loft) masked the problem, which has cost him thousands every year, he said.

“My tax bill is almost $3,000 more than what it should be [this year],” Shiu wrote earlier this month. “That means I have probably overpaid tens of thousands of dollars over the years. And the city said they will not pay me back.”

After researching the problem, Shiu contacted the city’s Assessing Department, and received an on-site visit from Assessor Tom White, who assured him that his unit would be taxed at the residential rate moving forward. A letter from Board of Review Chairwoman Constance Holmes confirmed the change, effective next year, but said the city is not obligated to issue any refunds.

“There has been no abatement application filed for this unit due to improper classification,” Holmes wrote. “Therefore, the City is legally precluded from abating your taxes.”

According to the City website, abatement applications must be filed after the 3rd quarter tax bill is issued and no later than February 1, leaving people like Shiu with no recourse to correct past misclassifications.

“Does this really make sense?” Shiu said in an interview with Patch. “I can understand if people were always talking about valuation…but this is a clear error.”

Laconia Lofts has over 100 units, and although he hasn’t heard from anyone who’s “in the same boat,” Shiu doubts that he’s alone in his problem. 

“This must be happening all the time,” he said.

Commissioner of Assessing Ronald Rakow did not return a request for comment from Patch. Shiu said he is currently looking into legal recourse.