DOR Issues Estimate for Fall 2013 CPA Trust Fund Distribution

March 12, 2013: The Massachusetts Department of Revenue (DOR) has released their projection of the CPA Trust Fund distribution that communities can expect to receive by November 15, 2013. DOR is estimating that the first round distribution will be 26% of the amount that communities raise from their local CPA surcharge.

Cities and towns that adopted CPA at the full 3% local surcharge will receive additional funds on the second and third distribution rounds, but estimates for those amounts were not provided. Communities with a 3% surcharge should contact their DOR Field Representative if they have questions on how to calculate their FY14 CPA budget.

The 26% first round estimate does not include any funding from the $25 million in state budget surplus funds that is targeted for CPA communities. The exact surplus amount will be determined in late summer when the state closes the books on FY13. Please note that DOR now has an additional month (up until November 15th each year) to make the CPA trust fund distribution, which will allow the surplus funding to be added to the statewide trust fund prior to the distribution to communities.

DOR's announcement includes additional instructions for communities on their FY14 CPA budget estimates; read the full DOR announcement for more information. Also available: an explanation of the formula used to distribute CPA trust fund payments, and a summary of monthly collections for the statewide CPA Trust Fund.

Please feel free to call the Coalition with any questions. Our technical assistance hotline is open Monday to Thursday at 617-367-8998.