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.
FY2016 Voluntary Payment Requests to Tax-Exempt Property Owners
As detailed in the Mayor's FY2016 Budget Message, Mayor Narkewicz presented his PILOT Program to the City Council on October 1, 2015. A copy of the proposed PILOT Program is available by clicking the image to the right.
Mayor Narkewicz 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 Mayor Narkewicz's Proposed Northampton PILOT Program
- The Sophian - Smith set to donate $520,000 to Northampton (PDF) - April 28, 2016
- NEPR - As Municipal Costs Increase, So Do Efforts To Get Colleges And Nonprofits To Pay Up (PDF) - April 20, 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