During a recent government meeting, discussions centered around the implications of a proposed increase in the Community Preservation Act (CPA) surcharge from 1% to 3%. A key point of contention was the clarification of how this surcharge interacts with existing property taxes.
Officials addressed a common misconception regarding the surcharge, explaining that the 1% is not an additional tax on the assessed value of properties but rather a percentage of the property tax bill itself. For instance, homeowners with an average property value of $110,000 currently pay approximately $110 under the 1% rate. If the rate were to increase to 3%, this amount would rise to about $330, effectively tripling the surcharge.
The discussion highlighted concerns from residents about the potential financial burden of this increase. One participant expressed apprehension about paying more taxes, seeking clarity on how the proposed changes would directly affect their property tax bills. Officials confirmed that the increase would indeed result in a direct rise in property taxes, clarifying that the additional 2% would be calculated based on the property tax bill rather than the assessed value of the home.
This dialogue underscores the importance of transparent communication regarding tax policies, as residents seek to understand the financial implications of government decisions. The select board's consideration of the surcharge increase remains a significant topic for local taxpayers, with potential impacts on household budgets across the community.