The COMMUNITY PRESERVATION ACT

Communities should be shaped by Choice not Chance

What is the Community Preservation Act?

How would these revenues help a community?

The funding received by the community can be used to address core community preservation concerns:

A minimum of 10% of the annual revenues of the fund must be set aside for each of these uses: Open Space Preservation, Affordable Housing and Historic Preservation. The remaining 70% can be allocated for any combination of these. A limited amount may be spent on planning or management of these resources, if needed.

Who decides how the funds are spent?

A community that accepts the Community Preservation Act provisions through a ballot vote sets up its own local Community Preservation Committee to hold local public hearings and recommend a plan to the town for use of these funds. The Community Preservation Act allows a community to set its own unique priorities and deal with persistent problems like sprawl; loss of farmland, open space and parks; and deteriorating downtowns. It allows them to plan ahead for sustained, managed development.

Is there proof that this Act will work for communities?

YES. Martha's Vineyard and Nantucket have had a real estate transfer tax for more than a dozen years. It has resulted in increasing access to beaches, building additional affordable housing, saving open space, and preserving the unique character of both these communities for all residents. Cape Cod has just voted to levy a surcharge on their property tax bills to pay for land acquisition and protect their water supply. All Massachusetts communities should have the same choices; that’s why statewide enabling legislation is needed.

Why is the legislature considering this Act?

Because local communities have requested such legislation. The Community Preservation Act is a response to the desire of communities to address their local needs. Since the mid-1980’s over 60 communities have requested the authority they would gain in the Community Preservation Act. The tide is rising in support of the Community Preservation Act from local governments across the Commonwealth.

 

Here is a partial list of towns that have currently or previously filed or have considered transfer tax home rule petitions or other related legislation:

Amherst

Barnstable

Berlin

Bolton

Bourne

Boxborough

Boxford

Brewster

Brookline

Cambridge

Carlisle

Chatham

Chelmsford

Cohasset

Concord

Dartmouth

Dennis

Dover

Eastham

Easton

Edgartown

Falmouth

Gay Head

Gosnold

Grafton

Groton

Harvard

Harwich

Hadley

Hingham

Hull

Ipswich

Lexington

Lincoln

Littleton

Marblehead

Marion

Mashpee

Maynard

Medway

Middleton

Milton

Montague

Monterey

Nantucket

Natick

Newbury

N. Andover

Northampton

Northborough

Norwell

Oak Bluffs

Orleans

Pelham

Provincetown

Rochester

Rowley

Sandwich

Scituate

Sharon

Stoughton

Stow

Sudbury

Swampscott

Tisbury

Truro

Walpole

Waltham

Wayland

Wellfleet

Wendell

Westford

Westport

Wilbraham

Yarmouth

      

Does this Act provide a fair way for communities to raise needed funds to preserve their community for all residents?

YES. All residents-new and long-time- will benefit from funds generated through the real estate transfer tax or a property tax surcharge. The deeds excise is a one time tax. Because real estate turns over every seven years on average, almost all residents will eventually be paying this transfer tax. The burden and the benefits of this transfer tax will be fairly distributed throughout the community over time. In some towns, a property tax surcharge may seem more equitable in that all property owners contribute toward the future livability in their town in direct proportion to their investments in real estate within that community.

Is this Act fair to business?

YES.The prime elements that draw business to Massachusetts are its natural and human resources: a clean environment, a skilled workforce and a high quality of life. A major goal of this Act is to enhance the livability of communities and assure that Massachusetts remains a competitive place in which to build a company. By helping a community preserve and maximize its resources and stabilize its local economy, this Act assists a community in keeping and attracting business.

 

Is this Act fair to new development?

YES. New development can spur financial havoc in a community. The average new family costs a city or town significantly more in services---police, fire, schools--- than the new home will return in property taxes. This Act helps a community to correct this disparity and helps send a more accurate economic price signal.. A community that adopts this act demonstrates that it cares about its people and its future. That makes property more valuable and more desirable, benefiting both seller and buyer.

Source: Community Preservation Coalition.Old City Hall, 45 School Street, Boston, MA 02108.