DOR Announces Trust Fund Disbursements

October 2009


On October 8, 2009, the Massachusetts Department of Revenue (DOR) released the Community Preservation Trust Fund disbursements for each CPA municipality.In accordance with Massachusetts General Law (MGL) Chapter 44B, Section 10, DOR annually disburses monies from the fund in mid-October to cities and towns that have adopted the CPA.


What amount will each CPA community receive this year?

Click here for DORís spreadsheet showing CPA Trust Fund distribution amounts for each city and town this year, plus DORís first look at the estimated first round match for next October.


To determine the exact distribution each community receives, DOR follows a formula in the CPA law that calls for up to three rounds of trust fund distributions.For the first six years of CPA, the trust fund provided a 100 percent match to local surcharge revenues on the first funding round.In 2008, due to an increase in CPAís popularity and a decrease in real estate activity, the percentage match fell to a range of 68 to 100 percent.


The third funding round is optional at the discretion of the Commissioner of Revenue, and although there was no third round distribution last year, DOR did conduct a third round payout this year.The Coalition had urged DOR to do so due to the low match percentages for most communities on rounds 1 and 2.Click here to read the letter the Coalition sent to DOR in September.


Breakdown of this yearís matching percentages

Here are the overall statistics from this yearís distribution:









A first look at next yearís estimate

In a memo released at the time of the CPA match distribution, DOR estimated that the first round matching percentage in October 2010 will decline again, to approximately 28%.Communities assessing the maximum 3% surcharge will receive more, based on the formula contained in Section 10 of the Act.DOR based their estimate on the assumption that the CPA trust fund will collect the same total revenue this year as it did last year.However, trust fund receipts have been trending up in the past six months, so it is possible that DOR may raise this estimate slightly as the revenue picture unfolds.


We will continue to monitor the trust fund collections each month, and report on the figures in future issues of CPA Update.