Press Release: 1/31/2025

DOR Implements New Policy to Improve Annual CPA Reporting Compliance

 



POSTED ON: JANUARY 30, 2025 - 10:19AM



DOR Implements New Policy for CP-2 ComplianceLast year, the state’s Department of Revenue (DOR) released a new public database of CP-2 report submissions from CPA municipalities, providing improved transparency on the detailed financial components of local CPA programs across the state. The CP-2 provides a useful snapshot of each community’s CPA finances, including important datapoints on CPA revenue sources, expenditures, interest payments, administrative expenses, and year-end balances across the different CPA funding categories. However, after this public database was launched, it revealed that CP-2 compliance among CPA communities had been uneven for several years—and so DOR then turned their attention to ensuring that all cities and towns complete their annual CPA reports accurately and on time.



DOR recently implemented a new policy that massively improved compliance with this mandatory CPA report. Last fall, DOR notified all CPA municipalities that in order to have their free cash or tax rate certified each year, they must first submit their completed CP-2 report. This incentivizes all CPA municipalities to complete their full CP-2 submission in a timely manner and ensures that the public has access to accurate information regarding their local CPA programs.



We are excited to report that since this new policy was put into place, DOR has received the FY24 CP-2 report from nearly every CPA community in the state—a significant improvement compared to previous years. We are grateful to DOR for encouraging CP-2 compliance so that the statewide CPA program can continue to benefit from transparent and up-to-date local reporting. Combined with the CP-1 Surcharge Report and the CP-3 Projects Report, consistent CP-2 submissions ensure that these public funds are being properly tracked and accounted for.



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