Accepting the Community Preservation Act

Introduction

The Community Preservation Act allows cities and towns to create a special Community Preservation Fund to use for open space, historic resources, and affordable housing. The fund is supported by a surcharge on annual real estate taxes.

Communities that create a Community Preservation Fund will also receive additional funding from a state trust fund. This trust fund is financed by a surcharge on documents that are recorded at the Registry of Deeds or Land Court.

In order for your community to participate in the Community Preservation Act, the Act must first be accepted by your municipality. The Act can be passed by being approved by the city or town legislature and then appearing as a local ballot question, or by being submitted as a local ballot question petition by registered voters in the community.

Legislative Body Action

One way to pass the Community Preservation Act is through the municipality’s legislative body. This could be a town meeting, town council, city council, board of alderman, or other local body that has the power to approve budgets, authorize debts, and adopt by-laws or ordinances for the community.

Approval by Legislative Body

The legislative body must approve the Community Preservation Act and the amount of surcharge that will be imposed on real estate tax.

They may also approve certain exemptions to the Community Preservation Act. These exemptions include:

• Low-income housing or low- to moderate-income senior housing.
• Class three commercial and class four industrial property defined in section 2A of chapter 59 in cities or towns with classified tax rates.
• $100,000 of the value of each taxable parcel of residential property.
• $100,000 of the value of each taxable parcel of class three commercial and class four industrial property defined in section 2A of chapter 59.

Ballot Question

After the legislative body approves the Community Preservation Act with a specified surcharge and any exemptions, they must propose it to the city or town’s voters through a ballot question. The question will appear on the ballot in the next municipal or state election.

The ballot question must read:
"Shall the (city or town) accept sections 3 to 7, inclusive of chapter 44B of the General Laws, as approved by its legislative body, a summary of which appears below?"

A fair and concise summary of the Community Preservation Act provisions that are the subject of the question must appear on the ballot underneath the question. The summary must be prepared by the city solicitor or town counsel and must include the surcharge percentage approved by the legislative body. The summary should also include the exemptions, if any, adopted by the legislative body.

A short, easy to understand, and fair summary of the Community Preservation Act should follow the question. The summary should include the amount of surcharge that will be added to the real estate taxes in that municipality and any exemptions that the legislative body approved. The summary will be prepared by the city solicitor or town council.

Depending on the type of election, the city, town, or state will need to be notified that the ballot question has been approved and needs to appear on the next ballot. If the next election is a municipal election, the ballot measure needs to be submitted to the town or city clerk at least 35 days before the election. If the next election is a state election, the legislative body needs to notify the Office of the Secretary of the Commonwealth in writing 60 days before the election. The Office of the Secretary of the Commonwealth will ensure that the ballot question appears on the ballot for that city or town.

The question is approved and the Community Preservation Act will be accepted and adopted if the majority of voters vote “yes” on the ballot question.

Ballot Question Petition

If the legislative body doesn’t accept the Act and approve the surcharge 90 days before a municipal election or 120 days before a state election, the city or town’s voters can file a ballot question petition.

Creation of Ballot Question Petition

The ballot question petition must include the specific surcharge amount and any exemptions. These exemptions include:

• Low-income housing or low- to moderate-income senior housing.
• Class three commercial and class four industrial property defined in section 2A of chapter 59 in cities or towns with classified tax rates.
• $100,000 of the value of each taxable parcel of residential property.
• $100,000 of the value of each taxable parcel of class three commercial and class four industrial property defined in section 2A of chapter 59.

A short, easy to understand, and fair summary of the Community Preservation Act should follow the question. The summary should include the amount of surcharge that will be added to the real estate taxes in that municipality and any exemptions.

Ballot Question

The ballot question petition must be signed by 5% of city or town’s registered voters. It must then be submitted to the local board of registrars of voters, board of election commissioners or election commission for signature certification. The board or commission will certify the signatures within seven days of filing.

If the next election is a municipal election, the ballot question petition needs to be submitted to the board or commission 42 days before the election. The board or commission must certify the petition at least 35 days before the election.

If the next election is a state election, the ballot question petition needs to be submitted to the board or commissioners 67 days before the election. The board or commission must certify the petition and submit written notice to the Office of the Secretary of the Commonwealth. The Office of the Secretary of the Commonwealth must receive the notice at least 60 days before the election.

After the signatures are certified, the ballot question will be added to the ballot for the next election. The question is approved and the Community Preservation Act will be accepted and adopted if the majority of voters vote “yes” on the ballot question.

After Approval

Notification of Acceptance

The city or town clerk must notify the Commissioner of Revenue when the Community Preservation Act is accepted. The notification must include the date and how the Act was approved (whether through legislative body action or ballot question petition).

Effective Date

If your community accepts the Community Preservation Act before the city or town makes their tax commitment for the fiscal year, the surcharge will start in that fiscal year. If not, the surcharge will start in the fiscal year that begins July 1 after the election.

Amending The Community Preservation Act

A city or town may amend the surcharge amount or the exemptions. The amendments must be approved by the legislative body and then by the voters in an election.

Revoking The Community Preservation Act

The Community Preservation Act can be revoked five years after it is accepted. It must be revoked in the same way it was passed (either through legislative body action or ballot question petition).

The surcharge will remain on all eligible taxes until all contractual obligations incurred by the city or town prior to revocation are complete.

Other Resources

Contact the offices listed below for more information on the Community Preservation Act.

Massachusetts Department of Revenue Division of Local Services
P.O. Box 9490
Boston, MA 02205-9490
Phone: 617-626-2300
Fax: 617-626-2330
Website: www.mass.gov/orgs/division-of-local-services

The Trust for Public Land
10 Milk Street, Suite 810
Boston, MA 02108
Phone: 617-367-6200
Website: www.tpl.org

Community Preservation Coalition
10 Milk Street, Suite 810
Boston, MA 02108
Phone: 617-367-8998
Fax: 617-367-9885
Website: www.communitypreservation.org