The surcharge added to property taxes can be no more than 3% of ones real estate property taxes. The town can elect a surcharge smaller than this, such as 1%. However, towns that adopt the 3% surcharge will receive a larger match from the state. Any portion of a taxpayer’s real property taxes that are already exempt are also exempt from the CPA. The town can also decide to allow exemptions for low income households or moderate income seniors, the first $100,000 of taxable value of residential real estate and for class 3 (commercial) and 4 (industrial) properties.
In Dighton the surcharge would be 1%, with low-income households (up to 80% of median income) and moderate-income seniors (earning up to 100% of median income) exempt from contributing. The first $100,000 of any residential property is also exempt. The average household in Dighton would pay between $25-30 per year. In Dighton the surcharge will be 1% of the tax bill so the average resident will pay between $25-30 annually. There will also be exemptions for low income households and moderate income seniors. The first $100,000 of taxable residential property value will also be exempted.
Residential Surcharge Example:
House value: $350,000
Exemption: - $100,000
Taxable value for surcharge: $250,000
Tax rate $11.50 per $1,000 of house value. Annual property tax bill $2,875.00
Annual CPA surcharge: $2,875.00 x 0.01 = $28.57 per year