Community Preservation Act (CPA) FAQs
The Community Preservation Act (CPA) was adopted by Belmont voters on November 2, 2010, with the Act to begin funding in FY2012. The Act establishes a Community Preservation Fund financed by property tax surcharges and annual distributions received from the State “Massachusetts Community Preservation Trust Fund”. All funds are to be used to:
- acquire, create and preserve open space;
- acquire, preserve, rehabilitate and restore historic resources;
- acquire, create, preserve, rehabilitate and restore land for recreation use;
- create, preserve and support community housing; and
- rehabilitate and restore open space and community housing acquired or created using monies from the fund.
This gives the community the opportunity to determine its priorities, plan for the future, and have the funds to make those plans happen. A Community Preservation Committee composed of local citizens will make recommendations on the use of the funds.
- Who pays the surcharge?
- How is the Community Preservation Act (CPA) surcharge calculated?
- When is the surcharge ordinarily billed and due?
- How long will the CPA remain in effect?
- Can the level of the CPA surcharge be amended?
- Who determines how the funds raised through the CPA will be spent?
- Are there any exemptions to the CPA surcharge?
- What are the requirements for a full CPA exemption?
- Can a taxpayer who is eligible to defer their property taxes also defer the CPA surcharge?
- Are amounts generated by the surcharge subject to the levy limitations of Proposition 2 1/2?
- Who do I call for further information about the Community Preservation Fund and the Committee?
With the CPA surcharge being effective FY2012, the amount shown on each of the 3rd and 4th quarter tax bills (issued 12/2011 and 03/2012, respectively) reflected the actual surcharge. The actual surcharge was based on the FY2012 tax rate and FY2012 assessed values which were established in the fall of 2011.
The surcharge, subsequently, will be imposed on all preliminary and actual tax bills, in other words effective FY2013. The 1st and 2nd quarter tax bills will be based on 50% of the previous year's CPA surcharge. For example, the surcharge on the 1st and 2nd quarter tax bills for FY2013 will reflect 50% of the FY2012 surcharge. The 3rd and 4th quarter tax bills will reflect the actual surcharge net of estimated 1st and 2nd quarter payments. For example, the actual surcharge on the 3rd and 4th quarter tax bills for FY2013 will be based on the FY2013 tax rate and the FY2013 assessed values which will be established in the fall of 2012.
- All property classified as residential: $100,000 of the value of the property (the CPA residential exemption).
- Mixed use properties: $100,000 of the residential value of the property or the total residential value of the property if it is lower than $100,000 (the CPA residential exemption).
- Commercial/Industrial properties: there are no exemptions.
- Property owned and occupied by person(s) who qualify for the low/moderate income CPA exemption: a full exemption from the surcharge. To receive this exemption, a taxpayer must submit the CPA Low/Moderate Income Exemption Application and must meet the income guidelines established by the State for the size and type of household.
Supporting documentation is required which will help the Board of Assessors make a determination of your eligibility for this exemption. A birth certificate or current driver’s license must be included with your initial application. Copies of your 2018 federal and state income tax returns may be requested to verify income for each household member.
For FY2021, age and residence requirements must be met as of January 1, 2020. The income limits for those 60 years and older and those under 60 years are shown on the linked table. To see the Annual Income Limit Chart for FY2021, please click here.
Income limits will be revised each year based on the Area-Wide Median Income determined by the U.S. Department of Housing and Urban Development (HUD). The figures in the FY2020 charts are based on the median income amount issued by HUD effective April 24, 2020. The Annual Income Limits are subject to change once the new median income is issued in March/April 2020, to be used for FY2021 filing.