Holyoke requires tax-exempt organizations to make payments

Holyoke will implement a new policy starting July 1. This policy will seek voluntary payments from tax-exempt organizations to help fund city services. Mayor Joshua A. Garcia announced the change, moving away from informal agreements to written contracts. The new Payment in Lieu of Taxes (PILOT) agreements will be based on fair market value. This means tax-exempt properties will help pay for essential services like police, fire, and public works. Previously, fewer than 10 nonprofits had informal agreements that exempted them from taxes. Recently, the number of tax-exempt properties has increased. In 2021, there were about 923 tax-exempt parcels in Holyoke. By 2025, this number rose to around 940. The total value of these properties is estimated at about $582 million. The city worked with the Edward J. Collins, Jr. Center for Public Management to develop this new policy. The center suggested a target of 25% for the PILOT payments, which could generate $1.8 million each year if agreements are reached. For smaller organizations with properties valued under $2 million, the payment will be at least 15% of the full tax levy. Agreements may be phased in over time, with payments potentially increasing yearly. Garcia noted that the city is working with tax-exempt organizations to ensure a fair approach to these agreements, which are important for funding municipal services. Some organizations, like Nueva Esperanza and Holyoke Gas & Electric, already participate in PILOT agreements, while others like Holyoke Medical Center do not. The city is also adding PILOT terms to agreements for properties that could be used by nonprofits.