What will CPA cost the average Middleboro homeowner?
Simple answer: About 92 cents per week for the average home
I was about to start running some real numbers on what the average Middleboro household would pay if we adopted CPA. Fortunately, I didn’t have to. I contacted a person from Community Preservation Coalition who sent me this projection based on FY2008 tax receipts.
To remind you – CPA would allow us to have a surcharge of 1-3% on our property tax bills. This money would be matched by the state up to 100% but more likely somewhere around 70-75%. These monies can be used for open space preservation, historical preservation, affordable housing, and recreational spending. In the next legislative session, there will be a bill to increase the minimun state match from 5% to 75%. Where else can you get a 75% return on your money?
The first $100K of property value is exempt and there are low income exceptions as well. These numbers are based on FY08 tax figures, using a residential tax rate of $10.10 per thousand and and the average single family home’s assessed value of $326,403 reduced to $226,403 with the $100K exemption. The brings the average tax payment down to $2,286.67.
Here are the expected payments, matching state funds, and totals based on these numbers:
| CPA% | Avg payment | Town total | State match | Total with 75% match |
|---|---|---|---|---|
| 1.00% | 22.87 | $198,328 | $148,746 | $347,074 |
| 1.50% | 34.30 | $297,492 | $223,119 | $520,611 |
| 2.00% | 45.73 | $396,656 | $297,492 | $694,148 |
| 3.00% | 68.60 | $594,984 | $446,238 | $1,041,222 |
CPA % – Amount of CPA surcharge
Avg payment – Average payment per house per year
Town total – Total raised by the town
State match – Amount given by the state (based on 75% match)
Total with 75% match – Total CPA funds raised by Middleboro with state matching funds
So – if Middleboro opts into CPA at the maximum amount of 3%, the average home will pay $68.60 per year or just $1.32 per week. This will raise $595K per year and bring in $446K of free state matching money for a total of just over $1M dollars per year to preserve open space, prevent unwanted development, preserve our history, pursue desireableaffordable housing, and improve the quality of life in Middleboro with properly funded recreational facilities.