Frequently Asked Questions

The owners of residential and commercial property pay the Community Preservation Act (CPA) surcharge.

For residential property owners, the surcharge is calculated as 1.5% of the product of the net assessed property value and the tax rate. The net assessed property value is the total property value annually established by the Board of Assessors less the $100,000 exemption in value adopted by the Town. Commercial properties are not eligible for the $100,000 exemption.

The surcharge was imposed on the actual tax bills for Fiscal Year 2012. It was displayed as a separate item on the last two tax bills, with due dates of February 1 and May 1.

With the CPA surcharge being effective FY2012, the amount shown on each of the 3rd and 4th quarter tax bills (issued December 2011 and March 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.

The CPA remains in effect for a minimum of five years from the date of voter approval in a municipality. After five years, it can be revoked in the same manner to approve the CPA originally - by a majority vote of the legislative body and by referendum. The surcharge continues to be assessed, however, until all obligations incurred and funded by the city/town from Community Preservation Fund revenues are paid.

A city/town may amend the surcharge percentage and exemptions. Amendment is by a majority vote of the legislative body and by referendum.

A Community Preservation Committee, consisting of five to nine members and composed of representatives from the Conservation Commission, Historical Commission, Planning Board, Board of Park Commissioners, and the Housing Authority, is responsible for evaluating the community preservation needs of the city or town and making recommendations to the community's legislative body as part of the annual budget process. A recommendation by the Community Preservation Committee and an appropriation by the legislative body of the city or town are both required to spend any monies belonging to the fund for particular community preservation purposes.

• 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.

To qualify for this exemption in Fiscal Year 2020, you must meet certain income thresholds as prescribed by state law. The thresholds for FY2021 are based on 2019 income. An application must be completed and filed with the Assessor's Office.

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 see the CPA Exemption Chart (PDF).

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.

A qualified taxpayer receives an exemption of the entire surcharge attributable to the real estate tax assessed on the Class One, Residential, assessed valuation of the parcel, regardless of ownership share or number of residential dwellings.

Note: the filing of an exemption application does not relieve a taxpayer from paying the surcharge while the application is being reviewed. If an application is approved, you will be refunded amounts already paid.

Important: An application for exemption from the CPA surcharge must be filed annually with the Assessors' Office.

No. The CPA surcharge cannot be deferred.

No. Amounts generated by the surcharge are not subject to the levy limitations of Proposition 2 1/2.

Please call the Select Board Office at 617-993-2610. The Select Board Office is located in the Main Town Hall at 450 Concord Avenue, First Floor, Belmont, MA 02478.