Skip to Main Content

Website Sign In

Northampton PILOT Program

Northampton PILOT Program Overview:

Large tax-exempt property owners are asked to make voluntary payment equal to 25% of what their property tax bill would be in recognition of core municipal services.
First $1 million dollars of property value is exempt.
Exempts property owned by governmental, religious and cemetery, land cemetery, and social service institutions.
Up to 50% credit for direct community services may be applied against annual payments.
Northampton PILOT Program will be phased in over 5 years to mitigate potential impacts on tax-exempt property owners.
First year (FY2016) of voluntary payment requests are equivalent to 5% of total property tax bill.

As detailed in the Mayor's FY2016 Budget Message, the PILOT Program was presented to the City Council on October 1, 2015. A copy of the proposed PILOT Program is available by clicking the image to the right.

The City of Northampton held a series of three town hall meetings around the city in October to present the Northampton PILOT Program and take questions and feedback from residents. The Mayor also had meetings with the leadership of most of the tax-exempt institutions identified for participation in the program. After listening to feedback from residents and tax-exempt institutions the Mayor made three modifications to the program which he outlined to the City Council in a November 17, 2015 memo (PDF). On December 3, 2015, the City Council endorsed the Northampton PILOT Program by adopting a resolution submitted by Mayor Narkewicz. View the resolution (PDF).

Media articles on Proposed Northampton PILOT Program

The Sophian - Smith set to donate $520,000 to Northampton (PDF) - April 28, 2016
Gazette - Smith College announces donations (PDF) - April 15, 2016
MassLive - Weeks after Northampton Mayor requests $245K in PILOT funds, Smith College pledges $100K in donation 'unrelated to the PILOT program' (PDF) - April 15, 2016
Gazette - Northampton Mayor David Narkewicz set to broach 'long-simmering' payment-in-lieu-of-taxes idea (PDF) - May 15, 2015
Gazette - Northampton Mayor David Narkewicz unveils details of plan to seek payment in lieu of taxes (PDF) - October 1, 2015
Gazette - Proposed payment-in-lieu of taxes program spurs debate among Northampton nonprofits (PDF) - October 13, 2015
Gazette Editorial: Mayor's pitch to nonprofits strikes reasonable balance in Northampton (PDF) - October 19, 2015
MassLive - Northampton mayor David Narkewicz to submit resolution on Payment in Lieu of Taxes program (PDF) - November 18 ,2015
Gazette - Mayor David Narkewicz introduces changes to proposed PILOT program (PDF) - November 18, 2015
Providers' Council PILOT Statement (PDF) - May 2011

Gazette letters to the Editor and Guest Columns on Northampton PILOT Program

Craig Addis, Tale of a Northampton nonprofit that has for years given back to the community (PDF) - October 29, 2015
Blair Barondes, Northampton's move in PILOT unfairly targets nonprofits (PDF) - November 13, 2015
Ruth Constatine, When it comes to taxing nonprofits, Northampton isn't Boston (PDF) - October 23, 2015
Nicholas R. Howe, City should take care in viewing Smith College as a piggy bank (PDF) - October 23, 2015
Kevin Lake, Whether to approve PILOT that's the wrong question (PDF) - November 20, 2015
Joanne Marqusee & Sanford Belden, CDH's greatest role is fulfilling mission of providing health care (PDF) - November 5, 2015
Kathleen McCartney, There is good reason for independent colleges to be tax-exempt (PDF) - November 5, 2015
David R. Pesuit, Smith College clearly benefits from vital Northampton downtown (PDF) - November 5, 2015
Nat Reade, How Smith College can be a better 'good neighbor' (PDF) - November 20, 2015
Joseph Tarantino, The 'Narkewicz Effect' if nonprofits has money liberals want it (PDF) - November 20, 2015
Tom Wolff, CDH's free care not an answer to city's PILOT request (PDF) - November 12, 2015
Jonathan Wright, How about a coPILOT program instead (PDF) - November 20, 2015
Frederick S. Zimnoch, PILOT program a 'slippery slope' that needs more thought (PDF) - November 3, 2015