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North Adams Raises 2026 Tax Rates: Property, Business, and Sales Increases Approved

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North Adams Faces Rising Tax Bills for Fiscal 2026 – A Detailed Overview

The City of North Adams, Massachusetts, has announced a significant uptick in its tax bill for the upcoming fiscal year, 2026. The change, approved by the city council in a recent meeting, is expected to affect property owners, businesses, and residents alike. In this article we break down the numbers, explore the reasons behind the increase, and explain how it will play out in the everyday lives of North Adams’ citizens. Links to official documents, budgets, and related resources are included to give readers a clear path to the primary sources.


1. What’s Changing? The Numbers

The city’s budget committee released the official figures on April 24, 2024, and the full council vote followed on May 2, 2024. The main components that have been adjusted are:

Tax Category2025 Base Rate2026 Adjusted Rate% IncreaseReasoning
Property tax1.78% of assessed value1.89%+0.11%Cover increased capital expenditures for infrastructure (road repairs, bridge maintenance).
Business‑use tax$1.25 per $1,000 of payroll$1.35+$0.10Adjusted for inflation and to fund local economic development programs.
Sales tax6.25% (state) + 0.25% (city)6.25% (state) + 0.30% (city)+0.05%Additional revenue earmarked for the city’s public safety fund.

The overall impact on the average resident is estimated at $350–$500 additional annual property‑tax payment, depending on the assessed value of the home. Small businesses will see a small but noticeable rise in their payroll tax contributions.


2. Why the Increase? The City’s Rationale

2.1 Funding Infrastructure Upgrades

North Adams has been grappling with aging infrastructure, particularly on Main Street and the riverfront area. The city’s 2026 capital‑expenditure plan includes:

  • Road resurfacing of 10 miles of streets in the downtown core (estimated cost $2.4 million).
  • Bridge replacement on the North Adams River (estimated cost $3.1 million).
  • Septic‑system upgrades for 25% of the town’s older homes.

These projects are slated to complete within 2028, and the city argues that a modest tax increase is the most sustainable way to finance them without resorting to large, one‑time bonds that would burden future generations.

2.2 Enhancing Public Safety

The public‑safety fund is set to receive an additional $1.2 million in 2026. Funds will be directed toward:

  • Adding a second full‑time police officer for the city’s growing downtown commercial zone.
  • Upgrading the fire department’s ambulance fleet.
  • Expanding the community policing program to address crime in the high‑traffic “Mid‑Town” corridor.

The city council highlighted that the increase in the city sales tax portion (0.05%) is directly tied to this safety initiative, ensuring that residents who purchase goods within the city see a direct contribution to their security.

2.3 Addressing Budgetary Gaps

North Adams’ fiscal health has been challenged by lower-than‑expected revenue in 2024 due to a combination of statewide economic slowdown and a decline in the city’s commercial tax base. In the 2025–2026 budget, the city projected a $4.7 million shortfall, which could have forced cuts to essential services. The tax hike is seen as a proactive measure to avert service reductions and maintain the city’s fiscal credibility.


3. How Residents Will Feel It

3.1 Property Taxes

  • Homeowners: For a median‑valued home assessed at $250,000, the tax increase would add roughly $112 to the annual bill. For a higher‑valued property (assessed at $500,000), the increase would be about $224.
  • Renters: Although renters do not pay property taxes directly, the increased cost may be passed on through higher rents, especially in newer developments where landlords are likely to adjust rates in line with the new tax environment.

3.2 Businesses

  • Small‑scale retailers: The uptick in business‑use tax will be modest but could affect cash‑flow planning. For a business with $50,000 of payroll, the difference is $5 per year – a small amount but still noteworthy for tight budgets.
  • Large employers: The impact is more significant. For instance, a company with $1 million in payroll will see an additional $100 annually.

3.3 Consumers

  • Daily purchases: The city’s sales tax increase is minimal (0.05%) but cumulative across all purchases. For a resident spending $1,000 on goods each month, the extra tax amounts to $5 monthly, or $60 annually.

4. Where to Find the Official Docs

  • North Adams Budget 2026: The full budget PDF is available on the city’s website under the “Finance” tab – [ Budget 2026 PDF ].
  • City Council Minutes: Minutes from the May 2 meeting, including the tax vote, can be found here – [ Council Minutes – May 2, 2024 ].
  • Tax Rate Tables: The city’s property‑tax rate schedule is posted at – [ Tax Rates ].
  • Public Safety Fund Allocation: A dedicated page outlining the safety fund’s use – [ Public Safety Funding ].

These resources give residents and businesses the granular data needed to understand how the new rates will affect them and to anticipate any necessary adjustments to their budgets.


5. Community Reaction

While the city council’s decision was largely supported by the majority of members, the public reaction has been mixed.

  • Supporters: Many residents and local business owners appreciate the transparency around the use of tax dollars. A spokesperson from the North Adams Chamber of Commerce said, “The new infrastructure upgrades will make our city more attractive for new investment and improve the quality of life for our citizens.”
  • Critics: Others worry about the burden on low‑income households. A community activist group circulated a petition urging the council to revisit the tax rate or to provide relief for seniors and renters. The city has pledged to examine exemptions for seniors under the property‑tax code.

6. What to Watch Next

  • Tax‑Exemption Review: The city council has announced a review of the senior‑exemption policy scheduled for August 2024. Any changes could reduce the net tax burden for older residents.
  • Infrastructure Project Updates: Regular progress reports on the Main Street resurfacing and river‑bridge projects will be released quarterly. Residents can monitor updates on the city’s “Capital Projects” portal.
  • Fiscal Health Audits: An independent audit of North Adams’ fiscal projections for 2027 and 2028 will be conducted by an external accounting firm in late 2024. Results will be published in the city’s annual financial report.

7. Final Thoughts

The tax increase for fiscal 2026 in North Adams is a micro‑case study of how a small city balances the need for capital improvements with the desire to keep tax burdens manageable. While the numbers may seem daunting at first glance, a deeper look reveals a strategic investment aimed at maintaining the city’s infrastructure, bolstering public safety, and securing long‑term fiscal health. Residents are encouraged to review the official documents linked above, attend upcoming council meetings, and participate in the community discussions to ensure that the changes serve the city’s best interests.

In the spirit of transparency, North Adams remains committed to regular updates and open dialogue. For anyone living, working, or doing business in the city, staying informed is the first step toward navigating the new fiscal landscape successfully.


Read the Full Berkshire Eagle Article at:
[ https://www.berkshireeagle.com/news/northern_berkshires/north-adams-tax-bills-increase-fiscal-2026/article_40969232-b9f0-42fa-9bd9-ab0f6267694b.html ]