Senate Budget Amendment Filed to Increase CPA Trust Fund Revenue

May 14, 2018: Last month, a budget amendment was filed in the House that called for an increase in the state's deeds recording fees and garnered over 80 co-sponsors during the sign-on period. Unfortunately, the amendment was not included in the final version of the House budget, as the House decided to remove all amendments that would have changed the level of state taxes or fees. However, the Senate is now working on their version of the FY19 budget, and funding for the CPA Trust Fund is once again being considered.

The Coalition is pleased to report that Senator Cynthia Stone Creem has filed a budget amendment that, if passed, would reverse the trend of the falling trust fund revenue. Senate Amendment 3 calls for an increase to the recording fees at the State's Registries of Deeds, and preliminary estimates indicate that this increase would restore the first round distribution in 2019 to a level above 30% for all 172 CPA communities.

What can you do to help?

The Coalition will be canvassing the State House seeking co-sponsors for the CPA amendment, but we could use your help. Please contact your State Senator this week and ask them to support an increase to the CPA Trust Fund. The link below will provide both email and telephone contact information for your State Senator-- call or write today:

Here's how to contact your Senator and ask them to co-sponsor Senate Budget Amendment 3. 

What's comes next in the budget process?

Debate on amendments to the Senate budget will take place the week of May 21st. If Senator Creem's CPA amendment is included in the final version of the Senate budget, it will then face one more hurdle before reaching the Governor's desk.  In early June, the House and Senate will each appoint three members to a conference committee to reconcile the differences between the House and Senate proposals. Both the House and Senate would then need to agree to include the CPA language in the final version of the budget. 

The Coalition will be providing updates throughout this budget process.

What language is included in the CPA Amendment?

Budget Amendment ID: FY2019-S4-3

OTH 3 - Community Preservation Act

Ms. Creem moved that the proposed new text be amended by inserting after section ____ the following section: -

“SECTION XX. Section 8 of chapter 44B is hereby amended by striking it in its entirety and inserting in place thereof the following:

Section 8. (a) Except as otherwise provided, the fees of the registers of deeds to be paid when a document or instrument is recorded shall be subject to a surcharge of $50; provided, however, that if the document or instrument to be filed includes multiple references to a document or instrument intending or attempting to assign, discharge, release, partially release, subordinate or notice any other document or instrument, each reference shall be separately indexed and separately assessed an additional $50 surcharge. The fee for recording a municipal lien certificate shall be subject to a surcharge of $25; provided, however, that if the certificate includes multiple references to a document or instrument intending or attempting to assign, discharge, release, partially release, subordinate or notice any other document or instrument, each reference shall be separately indexed and separately assessed an additional $25 surcharge. The surcharges imposed shall be used for community preservation purposes. No surcharge shall apply to a declaration of homestead under chapter 188 or to the filing of any subordinate mortgage extended by any public agency or quasi-public agency, including but not limited to a Commonwealth municipality or the Massachusetts Housing Partnership. No surcharge shall apply to the fees charged for additional pages, photostatic copies, abstract cards or additional square feet for the recording of plans.

(b) The fees of the assistant recorder, except as otherwise provided, to be paid when the instrument is left for registering, filing or entering with respect to registered land shall be subject to a surcharge of $50. The fees for so registering, filing or entering a municipal lien certificate shall be subject to a surcharge of $25. The surcharges shall be imposed for the purposes of community preservation. No surcharge shall apply to a declaration of homestead under chapter 188 or to the filing of any subordinate mortgage extended by any public agency or quasi-public agency, including but not limited to a Commonwealth municipality or the Massachusetts Housing Partnership. No surcharge shall apply to the fees charged for additional lots shown on plans, for indexing instruments recorded while a petition for registering is pending, for additional certificates of sewer assessments, for old age assistance liens, for duplicates and for photocopies.

(c) All surcharges on fees collected pursuant to this section shall be forwarded to the Massachusetts Community Preservation Trust Fund, established in section 9.

SECTION XX: The commissioner of revenue shall provide notification to the registers of deeds, the assistant recorders and the joint committee on revenue that the new surcharge amounts established under Section XX shall take effect on December 1, 2018. All documents received by the registers of deeds and assistant recorders prior to the effective date shall be subject to the fee surcharge applicable to section 8 of chapter 44B of the General Laws in effect on November 30, 2018.

SECTION XX: Section 8 of Chapter 44B as amended by this Act shall take effect December 1, 2018.”