A 2% transfer tax is paid by the buyer for each East End real
estate closing and the money is sent to the town where the property is
located. The Peconic Bay Region
Community Preservation Fund (CPF) is a public program managed by each of the
East End Towns for the protection of farmland, open space and community
character including historic structures.
The CPF was established by voter referendum in 1998, when
voters in the five towns (East Hampton, Riverhead, Shelter Island, Southampton
and Southold) approved a new real estate transfer tax of 2% on each transaction
occurring in these towns. This is a
one-time tax that the buyer of real estate is required to pay when purchasing
improved property or vacant land. The
first $250,000 in East Hampton, Southampton and Shelter Island, and $150,000 in
Riverhead and Southold of the purchase price of improved property and $100,000
and $75,000 for unimproved land, is exempt from the tax. In 2016, voters in all five towns approved a
third referendum, extending the collection of the tax through 2050 and giving
each town the opportunity to invest up to 20% of the CPF revenues in water
quality projects.
First time homebuyers are exempt from the tax (except
Riverhead). The exemption applies to property purchased as a primary residence
by one or more persons, each of whom is a first-time homebuyer, provided that
certain criteria regarding household income and the purchase price are met.
There is a CPF Advisory Board, composed of citizens from each
town, that makes recommendations on acquisitions to the respective town
boards. For more information see
references below or contact Southold Town, Suffolk County or New York State.
Sources: www.SoutholdTownNY.org; www.PeconicLandTrust.org; https://suffolklaw.com/the-first-time-homebuyer-exemption-to-the-peconic-bay-real-estate-transfer-tax
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