Hampshire County towns push colleges for larger voluntary tax payments
Amherst and Northampton officials are pushing the Five Colleges to increase voluntary payments as municipal budgets strain and school facilities deteriorate.
Hampshire County municipalities face significant budget constraints as the region grapples with steep property tax revenue losses due to tax-exempt land holdings by five major colleges. Officials and residents are increasingly pushing the institutions to provide greater financial support through payment in lieu of taxes, or PILOT agreements, as municipal services deteriorate and fiscal pressures mount.
The Five Colleges, collectively holding tens of millions of dollars worth of property, currently pay less than $3 million annually to their host communities despite owing far more if taxed at standard rates. The disparity has become a flashpoint as towns consider raising property taxes or cutting services to balance budgets, and with key agreements set to expire, local officials see an opportunity to demand renegotiation.
In Amherst, where 40% of the town's land is tax-exempt and nearly half of that owned by Amherst College, UMass Amherst, and Hampshire College, the pressure is particularly acute. [Amherst College would owe approximately $18 million] to the town in 2026 if its property were taxable, while [UMass Amherst would owe roughly $20 million] annually, according to Amherst's assessor's office and property records analyzed by The Shoestring. "People are interested in this, they are paying attention to this, and they are furious about it," said Jill Brevik, town councilor for District 1.
The frustration stems partly from visible infrastructure failures in public schools. Julian Hynes, who attended Amherst Regional Public Schools, experienced roof leaks and holes in walls that allowed squirrels to enter buildings. In March 2026, a student at Amherst Regional Middle School sustained minor injuries when an object fell from an opening in the building's ceiling, according to Superintendent E. Xiomara Herman. Years later, Hynes and 10 other high school students protested the issue at a Town Council meeting, advocating for voluntary college contributions to improve school funding.
UMass Amherst established a strategic partnership agreement with Amherst in 2023, committing to donate approximately $5 million over five years to support fire and ambulance services, community health and safety, economic development, and education for K-12 students in university housing. Amherst College entered a memorandum of understanding with the town in 2025, providing approximately $775,000 annually over three years, split evenly between public works and infrastructure, fire and ambulance services, and public schools.
Town Manager Paul Bockelman said he recognizes the value of existing partnerships but believes the institutions should contribute more as costs rise and the colleges expand. "Costs have changed, the institution is growing, and the town needs long-term fiscal sustainability. I believe both institutions should be contributing more to the town, and they know I believe that," Bockelman said. The UMass strategic partnership agreement is set to expire in fiscal year 2027, creating a window for renegotiation.
In Northampton, [Smith College would have owed over $6 million] in property taxes in 2026 if not tax-exempt, though the college pays taxes on commercial and non-institutional properties, making it the city's largest taxpayer. Smith maintains an annual agreement with Northampton to compensate for taxable properties demolished to extend the Clark Science Center, paying $156,000 in 2025 with annual increases, according to City Councilor Meg Robbins. "Northampton maintains many PILOT agreements with nonprofits. The city has consistently encouraged Smith to enter into a PILOT agreement and will continue to do so," said Alan Wolf, chief of staff to Mayor Gina-Louise Sciarra. Smith College did not respond to requests for comment.
The colleges have made sporadic one-time donations. Last year, Smith College donated $500,000 to Northampton's public schools, while Amherst College funded replacement of designated town buildings in Amherst. UMass Amherst donated $400,000 for a new ambulance in 2024. Nonprofit property owners like colleges, hospitals, and government agencies are exempt from property taxes under state law. Most PILOT agreements are voluntary, placing responsibility on municipalities to negotiate contributions.
Springfield, home to approximately $3 billion worth of tax-exempt property in fiscal year 2024, recoups only about $300,000 annually from existing PILOT agreements, according to a city audit. Of the state's communities with the highest percentage of tax-exempt land, western Massachusetts occupies the top six spots: Huntington, Gill, Amherst, Williamstown, Deerfield, and Springfield. Last fall, a Springfield City Council task force called for hiring a consultant to help collect more from nonprofits. In Holyoke, Mayor Joshua Garcia proposed a new PILOT policy last year, noting that approximately 16% of properties are tax-exempt, from charities and churches to health centers.
The state government has also faced criticism for inadequate compensation to municipalities for state-owned land. In the 29 towns surrounding the Quabbin Reservoir, residents have long expressed outrage over state payments as towns face the choice of raising property taxes or cutting services. Governor Maura Healey announced last month the formation of a commission to advise her on reforms to the state-owned land PILOT formula. "For too long, the state's current state owned land PILOT formula has shortchanged rural communities in western and central Massachusetts, despite the enormous contributions these communities make in stewarding the Commonwealth's forests, farms, and watersheds," said state Senator Jo Comerford, D-Northampton, in the commission's announcement.