In 2000, Massachusetts adopted the Community Preservation Act which allows towns to impose a surcharge on local property taxes to enhance programs devoted to open space and recreation, historic preservation, and affordable housing. Since the law’s inception, 127 towns throughout the Commonwealth, or 1/3 of the towns statewide, have adopted a local Community Preservation Act (CPA), and are receiving matching funds for the state for a wide variety of worthwhile programs.
Three communities in the Berkshires—Williamstown, Stockbridge, and Lenox—have passed the necessary legislation and are receiving funds for their preferred programs. Becket is trying to get a CPA passed in this year’s Town Meeting. Monterey has a good chance of becoming the 4th or 5th Berkshire community to lock in the wisdom of the program for the good of our town.
On Tuesday, May 20, 2008, the Monterey Preservation Land Trust is hosting an educational forum on the CPA for Monterey residents at Town Hall. The moderator will be Wendy Sweetser, Director of Highland Community Initiatives, a project of The Trustees of Reservations. Other speakers include Marilyn Wightman, president of the board of Construct, and Roscoe Sandlin, chairman of the CPA in Lenox.
The CPA allows the community to impose a surcharge of up to 3% of the property tax for each homeowner. While this does represent an increase in what homeowners pay, the surcharge is modest in scope and reaps thousands of dollars for community projects.
Each year 30% of the funds raised by the town for its CPA, and funds awarded to the towns by the state, must be spent or allocated so that 10% goes to each of the CPA’s goals—open space and recreation, historic preservation, and affordable housing. The remaining 70% can be spent or allocated as desired to the CPA’s three goals.
Although state law allows for a surcharge of up to 3% of the property tax, exceptions are allowed. For example, a town can exempt the first $100,000 of tax valuation, thereby reducing the surcharge. Towns can also exempt low-income taxpayers and low-and middle-income seniors from the surcharge. And although towns can impose the full 3% surcharge, many choose to use a lower percentage even though that, of course, lowers the contribution by the state.
The state’s funds for this act come from a tax imposed on real estate deals, and is collected by the Registry of Deeds on all housing sales. Since Sept 14, 2000, when the CPA went into effect, the state has matched funds raised by each town dollar for dollar. In FY 2007, the state had $68.1 million in the account specifically for CPA matching funds.
Please join us at Town Hall on Tuesday, May 20 at 7:00 p.m. for this informative meeting. We hope that Monterey becomes the fourth or fifth town in the Berkshires to pass a Community Preservation Act that will cost us very little and gain us a great deal.
Laury Epstein
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