Upstate towns are jumping on the conservation band wagon. The most recent is the Town Board of the Town of North East in Dutchess County.
New York State has authorized the Town Board of the Town of Northeast in Dutchess County to establish a Community Preservation Fund by referendum. The goal of the fund is to provide a source of revenue for the Fund, and adds Article 31-A-3 (“Tax on Real Estate Transfers in the Town of Northeast”) to the Tax Law.
Provided the Town approves a referendum to adopt a Local Law, transferees may be subject to a new transfer tax of up to two percent (2%) of consideration, payable by the grantee, on the conveyance of real property in the Town. Other Towns, including the Town of Red Hook has asdded, “[a]n exemption from the tax which is equal to the median sales price of residential real property within the applicable county, as determined by the Office of Real Property Services pursuant to Section 425 of the Real Property Tax Law…”