October 4, 2010
Today, 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?
All CPA communities will receive a 27.2% match on round one of the trust fund distribution, which is down from 34.8% last year. Communities that adopted CPA with a full 3% local property tax surcharge will receive additional revenue on rounds two and three.
Click here for DOR’s spreadsheet showing CPA Trust Fund distribution amounts for each city and town this year.
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. During the first six years of CPA (2002 through 2007), the trust fund provided a 100 percent match to local surcharge revenues on the first round. The match has fallen each year since then, due to an increase in CPA’s popularity and a decrease in real estate activity. The first round yielded a 67.6% match in 2008, but fell to 34.8% last year, and 27.2% this year.
Analysis of this year’s distribution
Here are the overall statistics from this year’s distribution:
Next year’s estimate
When making the October distribution in past years, DOR issued a preliminary estimate of the percentage match for the following year. Unfortunately, no such estimate was included with this year’s distribution memo. If such an estimate is released, we’ll report on the figures in our newsletter, CPA Update.