DOR Issues Record Low Estimate for Fall 2018 CPA Trust Fund Distribution

Apr. 3rd, 2018: The Department of Revenue has issued its annual budget memo to municipalities and it includes an estimate of 11.5% for the November 2018 first round CPA Trust Fund distribution. As in the past, this is the figure that all communities with a local surcharge of less than 3% should use when finalizing their FY19 CPA budget this spring. Cities and towns that adopted a surcharge of 3% will receive additional funding in rounds two and three; consult with your DOR field representative for assistance with estimating your FY19 CPA budget.

Here is the text on the CPA portion of the memo:

During FY2018, 172 cities and towns collected the local Community Preservation Act (CPA) surcharge and are eligible for state matching grants in FY2019. DLS estimates that the balance in the state trust fund will be sufficient to provide a first round match of 11.5% of the surcharge levied by each city and town.

In FY2019, there will be equity and surplus distributions for those cities and towns that have adopted the maximum 3% surcharge. With these additional distributions, the total state reimbursement for qualifying cities and towns will increase, depending on their decile and total surcharge amount. The above estimates are subject to change depending on Registry of Deeds collections between now and October.

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