Northampton hearing on FY2026 tax classification highlights utility‑driven personal‑property growth; assessor recommends single rate

Principal Assessor Mark Dottrell told the Northampton City Council at a Nov. 6 public hearing that the city’s total taxable value for fiscal year 2026 is about $5.94 billion and that the residential class accounts for roughly 84.41% of the levy. Under Massachusetts General Laws chapter 40, section 56, the council must decide whether to adopt a residential factor and thereby keep a single tax rate or shift the levy among property classes.

Dottrell recommended keeping a single tax rate (residential factor = 1) and presented the components used to set a rate: the levy limit, total property valuations and new growth. He said new‑growth value for FY26 included approximately $32.15 million from residential additions and about $32.38 million from personal property, the latter described as “one of the highest growth years” in his nine years in the assessor’s office and attributed primarily to Eversource utility upgrades.

Dottrell explained that a split rate is feasible only where a municipality has a sizable commercial/industrial tax base; he cited Department of Revenue guidance that a split‑rate community typically has a commercial levy base near 30%—Northampton’s is about 15.59%. He presented an example showing that a DOR‑allowed maximum shift would reduce the residential rate but raise commercial, industrial and personal‑property bills substantially.

During Q&A, councilors asked whether the personal‑property increase came from Gateway Fiber or from Eversource; Dottrell said it was “primarily Eversource.” Councilor Rothenberg asked whether the assessor had consulted the city’s economic development director; Dottrell said he had not but had conferred with the finance director and the mayor’s office.

Members of the public asked for detail on what types of Eversource property were taxed; Dottrell said the valuation reflects equipment and upgrades used to serve the community. Staff said solar panels are currently exempt from personal property tax; they agreed to ask Residential Research Consultants (the third‑party appraiser) whether Gateway Fiber assets have been captured in recent valuations.

The council opened and closed the hearing by roll call (opening and closing both passed 7–1; Councilor Rothenberg voted no). The tax classification order (to set residential factor = 1) was taken as first reading; after debate, the council withdrew a motion to refer the item to the finance subcommittee and instead referred the order to the consent agenda for the Nov. 20 meeting.