Nahant residents seek reduced town property tax surcharge

NAHANT – Some residents would like to have the property tax surcharge for community preservation reduced.The town passed the Community Preservation Act in April 2004, which allows it to tack a surcharge of 3 percent of the real estate tax levy onto tax bills. The money generated by the property tax surcharge goes into the town Community Preservation Fund.Resident Lou Moody and a handful of other residents submitted a warrant article asking voters at Town Meeting to reduce the surcharge to 1 percent.Calls to Moody were not returned this week, but Assistant Assessor Sheila Hambleton said the average value of a single-family home in town is $633,400 and the tax on it is $5,276, making the CPA tax surcharge $158.29. Hambleton said if the surcharge were dropped to 1 percent, the homeowner would pay $52.77.Nahant Town Administrator Mark Cullinan said the article has been placed on the draft warrant, but he is looking into whether an article on Town Meeting warrant meets legal requirements set by the state for changing the percentage of the tax.Cullinan said he has been informed by the Community Preservation Act Committee that the statute governing the CPA requires it be amended in the same manner it was passed.Because the CPA was passed as a ballot referendum, Cullinan said it is possible another ballot referendum would be required to modify it.The CPA allows money in the fund to be spent for historic preservation, open space and affordable housing. It requires 10 percent of the money raised by the tax surcharge to be spent in each of those three categories and the remaining 70 percent could be spent in any of the three categories.In April 2004, Town Meeting approved establishing a Community Preservation Committee, which is charged with making recommendations regarding open space, preservation and affordable housing.The nine-member committee, which is required by the CPA, is comprised of one representative from each of the following town committees: Conservation Commission, Historical Commission, Planning Board, Recreation Commission, Housing Authority and the Open Space Committee and three appointees made by Selectmen.In accordance with the state Community Preservation Act, the committee will recommend how the money should be spent but it cannot spend any money without the approval of Town Meeting.