CPA Surcharge on Tax Bill

Community Preservation Act Surcharge

The Town of Northborough adopted the Community Preservation Act (CPA) by ballot vote at the November 2004 election.  With this adoption, per MGL Chapter 44B section 4, the town can assess a 1.5% surcharge on real property taxes annually and the Commonwealth of Massachusetts will match these revenues.  This annual charge is paid by the owners of taxable real property in the Town of Northborough.  The surcharge will be apportioned onto each quarterly real estate tax bill.

The Surcharge will fund:

• Open Space Acquistions
• Affordable Housing Projects
• Historic Preservation Projects

The CPA Surchage Calculation:

The surcharge is calculated by reducing the assessed value of property by $100,000 for residential parcels. That reduced value is then taxed at the current tax rate and divided by 1,000 and then multiplied by 1.5%.  This total represents the CPA surcharge and will be added to the fiscal year tax bill. NOTE: The $100,000 exemption is only applicable to residential parcels, not commercial.  Commerical is subject to 1.5% of the total assessed value without exemption.

EXAMPLE:

Assessed value: $400,000  Tax Rate: $14.28

400,000-100,000 = 300,000 x 14.28 = 4,284,000/1,000 = 4,284 x 1.5% = $64.26 CPA surcharge

$4,284 (annual tax) + $64.26 (CPA Surcharge) = $4,348.26 annual tax due

EXEMPTIONS:

Every residential owner is entitled to the  $100,000 exemption in the above formula.

Qualifying lower income owners and low-to moderate seniors may be eligible for a full surcharge exemption, based on income guidelines established by the Commonwealth each year.  Contact the Assessor's Office for more information on qualifying for CPA Exemptions.  508-393-5006