Hampshire County Municipalities Press Colleges for Greater Financial Contributions
With millions in uncollected potential tax revenue, Amherst and Northampton are preparing to renegotiate agreements with wealthy colleges as existing deals near expiration.
Hampshire County municipalities are pushing colleges to increase financial contributions as budget pressures mount across the region.
The Five Colleges—UMass Amherst, Amherst College, Hampshire College, and Smith College—hold vast tax-exempt property in Amherst and Northampton. If taxed, Amherst College's holdings would generate approximately $18 million in annual property tax revenue for Amherst in 2026, while UMass Amherst's 9% of the town's land mass would yield roughly $20 million yearly. In Northampton, Smith College's property would have owed over $6 million in 2026 property taxes if not for its tax-exempt status. Yet collectively, the Five Colleges pay less than $3 million annually to their host municipalities through voluntary agreements.
Amherst faces particular strain because 40% of the town's land is tax-exempt, with nearly half owned by the three colleges. "People are interested in this, they are paying attention to this, and they are furious about it," said Jill Brevik, Amherst's Town Councilor for District 1. The issue gained prominence when high school students, including Julian Hynes, protested inadequate school building conditions at a Town Council meeting, pointing to the colleges as a potential source of additional funding.
The colleges do make contributions. In 2023, UMass Amherst established a strategic partnership agreement promising approximately $5 million over five years for fire and ambulance services, community health and safety, economic development, and K-12 education for university housing residents. Amherst College entered a memorandum of understanding in 2025 providing approximately $775,000 annually for three years, split between public works, fire and ambulance services, and public schools. In Northampton, Smith College is the city's largest taxpayer due to taxes on commercial and non-institutional properties. Smith maintains an annual agreement related to Clark Science Center expansion, paying $156,000 in 2025, with increases scheduled as assessments change.
Amherst Town Manager Paul Bockelman said he recognizes the value of existing partnerships but wants renegotiation as the colleges grow and town costs rise. "Costs have changed, the institution is growing, and the town needs long-term fiscal sustainability," Bockelman said. "I believe both institutions should be contributing more to the town, and they know I believe that." A strategic agreement between Amherst and UMass is set to expire in fiscal year 2027.
Northampton's chief of staff Alan Wolf said the city maintains multiple agreements with nonprofits and has encouraged Smith College to enter into a formal payments in lieu of taxes, or PILOT, agreement. Smith College declined to comment. Other colleges have made one-time donations: Smith gave $500,000 to Northampton's public schools last year, Amherst College funded replacement of town buildings, and UMass Amherst donated $400,000 for a new ambulance in 2024.
PILOT agreements allow municipalities to negotiate voluntary financial contributions from tax-exempt property owners including colleges, universities, hospitals, and government agencies. Western Massachusetts communities hold the highest percentage of tax-exempt land in the state, with Huntington, Gill, Amherst, Williamstown, Deerfield, and Springfield occupying the top six spots. At the state level, Gov. Maura Healey recently announced formation of a commission to advise on reforms to the state-owned land PILOT formula, citing concerns that rural western and central Massachusetts communities have been inadequately compensated for stewarding state forests, farms, and watersheds, according to state Sen. Jo Comerford, D-Northampton.