Understanding the CPF Charge

Published January 9, 2008 | Collector / Treasurer | Automatically Archived on 1/23/2008

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Taxpayers occasionally ask about the CPF charge that appears on their tax bills.  This note briefly explains the purpose of this charge and how it is calculated.

Sudbury voters adopted the Community Preservation Act (CPA) in March 2002.  It establishes a funding source (the Community Preservation Fund, CPF) financed by residential property tax surcharge revenues for the purpose of open space, recreation, historical preservation and community housing projects.  The State provides matching funds for projects funded by the CPF.

The following example shows how the 3% surcharge is calculated and included in Sudbury FY08 tax bills based on a hypothetical residential property valued at $500,000. 

Assessed Value = $500,000

Basic Tax: $500 x 14.27 = $7,135.00 (without the CPF surcharge)

The first $100,000 of Assessed Value is exempt from the 3% CPF surcharge: $500,000 – 100,000 = $400,000

Basic Tax on adjusted value: $400 x 14.27 = $5,708.00

3% CPF surcharge on adjusted basic tax: $5,708.00 x .03 = $171.24

Total Tax (incl. CPF): $7,135.00 + $171.24 = $7,306.24

More information on the CPA is available on the website for the Massachusetts Department of Revenue, Division of Local Services.