EN ESPAÑOL, PULSE AQUÍ

The Finance Committee, chaired by City Councilor Patricia Devine, discussed the much-debated tax fee for the Community Preservation Act, which is at 1.5 percent and taxed after the first $100,000 of a property’s value.

The CPA tax may be on the ballot on Nov. 5, the presidential elections. It returns again to the City Council for discussion on May 7.

If passed with  a decrease that some councilors want to be set at 1 percent, that would mean  taxpayers would pay between $1 a month – or up to $5 a month, if their home is valued at $400,000, said City Councilor and Chair of the CPA Committee Meg McGrath-Smith.

City Councilor Meg McGrath-Smith

“The average single family home will save $13.84. The average of, you know, single family home that’s valued at$472,000 would save $34.89, but it would cripple the CPA,” McGrath-Smith said.

City Councilor Howard Greaney Jr. said, “Let the people vote. I’ve been saying that from the get go.”

The Public Comment section, in which several people spoke and all in favor of leaving the ballot question as is — 1.5 percent tax fee — included Linda Pratt, who said:

 I am completely in favor of keeping the CPA at 1.5. I’ve looked at some of the signatures on the petitions that were submitted to lower it. And quite honestly, when I looked at those people’s property values, the amount that they would save is minimal. For $50.30, $35 a year, I would save $3.50 a year by this reduction. It is amazing to me that the council is spending so much time debating this.

From the city’s CPA website FAQ (Frequently Asked Questions):

How is CPA funding generated?

CPA funds are generated through two sources: a voter-approved surcharge of up to 3 percent on property tax bills, and an annual disbursement from the statewide Community Preservation Trust Fund, which distributes funds each November to communities that have adopted CPA. The Trust Fund’s revenues are derived from fees collected at the Registry of Deeds, and from state budget surplus funds. Holyoke voters adopted a 1.5% surcharge.

Example: the average home in Holyoke is assessed at $1 79,340 and the homeowner would pay an additional $23 per year for the proposed 1.5% CPA surcharge which is assessed only on the portion of the property tax bill after the first $100,000 is exempted.

To review how CPA funds have ben put to use in Holyoke, clock here.

More info from the Housing Toolbox for Massachusetts Communities:

CPA allows communities to adopt a local property tax surcharge for fund open space, historic preservation, affordable housing, and outdoor recreational facilities. The surcharge can range anywhere from o. 5% to 3%. Municipalities can exempt low- and moderate-income households and/or commercial properties.

Communities are required to allocate at least 10% of funds raised each year to each of the 3 categories – open space, historic preservation, and affordable housing. The remaining 70% may be allocated among any of the categories and also recreation. CPA funds can be used for a wide range of housing purposes, making it a valuable resource for communities at all stages of addressing their housing needs, from developing initial strategies to creating programs and preserving existing developments. CPA offers local control, flexibility, and fairly simple administration and can be used to combine housing activities with open space and/or historic preservation activities. The Community Preservation Coalition offers extensive free help to communities using or considering CPA. For examples and more information about the Community Preservation Act, check out the Massachusetts Housing Partnership’s CPA guidebook.