Cities and towns that adopt the CPA obtain community preservation funds from two sources - a local property tax surcharge and a yearly distribution from the statewide CPA Trust Fund.
How does the statewide CPA Trust fund work? Trust fund revenues are derived from a surcharge placed on all real estate transactions at the state's Registries of Deeds. The Department of Revenue reports monthly on these collections, and each March they provide an estimate of the annual trust fund distribution. Each CPA community receives their distribution from the trust fund at a formula-based percentage of what they raised locally. Learn more about the formula used to distribute the statewide CPA Trust Fund.
In recent years, as CPA was adopted by more communities and the real estate market declined, the base trust fund distribution decreased dramatically. To address this decline, Governor Patrick signed legislation to update CPA in 2012. The bill included a new revenue source to provide additional funding for the trust, over and above the revenue from the deeds recording fee. As a result, $25 million from the state's FY13 budget surplus was added to the trust fund prior to the November 15, 2013 distribution and another $11.4 milion was added from the FY14 budget surplus. These budget surplus funds must be renewed on an annual basis however, so the Coalition has been advocating for legislation to provide more stable funding for the future.
Statewide CPA Trust Fund - Distribution History
Grand Total Statewide CPA Trust Fund Distribution: $542.12 million