Changes to Peconic Bay Community Preservation Fund Tax Rate and Allowances
Section 1449-bb of Article 31-D of the New York Tax Law grants Towns in the Peconic Bay Region the authority to impose a real estate transfer tax on each conveyance of real property or interest therein. Section 1449-bb, along with various local Town Codes, was recently amended to (i) increase the allowances for improved properties, and (ii) eliminate allowances for transactions over a certain amount. East Hampton, Shelter Island, Southampton, and Southold will be affected; Riverhead will remain unchanged.
Effective for conveyances dated on and after 1/1/23 there will be an increase in the allowable exemption from the Peconic Bay Preservation Fund Tax. (see below for exemption amounts)
Effective for conveyances dated on and after 4/1/23 there will be a tax rate increase. (see below for tax rate increase)
East Hampton,
Shelter Island,
Southampton:
- Exemption amount increasing from $250,000.00 to $400,000.00 for Improved Land
- No change for Unimproved Land – Exemption remains at $100,000.00
- No exemption on conveyance $2,000,000.00 or greater
- Rate of tax is currently 2%; Effective 4/1/23, the rate will increase to 2.5%
Southold:
- Exemption amount increasing from $150,000.00 to $200,000.00 for Improved Land
- No change for Unimproved Land – Exemption remains at $75,000.00
- Rate of tax is currently 2%; Effective 4/1/23, the rate will increase to 2.5%
Riverhead:
- No change in exemption amount
- Allowance remains at $150,000.00 for Improved Land
- Allowance remains at $75,000.00 for Unimproved Land
- Rate of tax will remain at 2%; No increase on 4/1/23
Both the Suffolk County Clerk’s Office Letter advising of the changes and the new Peconic Bay Community Preservation Fund Transfer Tax Form may be found by clicking here CPF Charges and Peconic Bay Community Preservation Fund Transfer Tax Form.
As always, please contact us with any questions.