Authorizes cities or towns to impose a tax on real estate transfers and authorizes municipalities to create community preservation funds

BILL NUMBER:S1447

Title of bill

An act to amend the environmental conservation law, the general municipal law and the tax law, in relation to authorizing cities and towns to impose a tax on real estate transfers, and authorizing municipalities to create community preservation funds

Purpose

To authorize towns and cities in New York State to adopt, upon approval by a voter referendum, a transfer tax on real property transactions of up to 2% for the purpose of establishing a community preservation fund to be used to preserve community character through conservation of land or preservation of historic places or buildings. This measure would authorize towns and cities across the State to establish a local source of funds modeled on the successful program that has been established by the five towns at the east end of Long Island.

Summary of provisions

Sections one and two of the bill provide for review of community preservation project plans by the regional advisory councils established pursuant to the New York State Open Space Plan process and by the State Land Acquisition council comprised of governmental leaders pursuant to existing statute.

Section three of the bill adds a new section 248 to the General Municipal Law that authorizes towns and cities to establish, upon approval by a voter referendum in the local jurisdiction, a community preservation fund for the purposes of conserving land and historic preservation in that city or town.

Section four of the bill adds a new article 31-F of the tax law that provides for a real estate transfer tax of up to 2% in towns and cities for providing monies for their community Preservation Funds.

Section five of the bill provides for severability, and section six of the bill is the effective date.

Justification

Undeveloped and agricultural lands in New York State are disappearing at a rapid rate. In the effort to conserve land, communities across New York State are exploring a range of options from land use planning activities to outright purchase of property. In conserving land, communities are pursuing different objectives such as providing parkland, safeguarding drinking water, conserving farmland, protecting habitat, preserving spectacular scenic views and preserving properties of historical significance. To achieve these ends, localities may need new sources of financial resources. This legislation provides communities with an option.

Without this bill, each separate town or city that wants to establish a community preservation fund with monies garnered from the real estate transfer tax transactions will have to seek State enabling

legislation. This can be a difficult and time-consuming process, and in the recent past, several localities have not been able to secure State legislative approval despite local public support for the initiative.

Five towns on the east end of Long Island have set a precedent that this approach can be highly effective in getting financial resources to those towns that are actively involved in land conservation and preservation of community character. This bill would empower communities across New York State by allowing them the same opportunity to establish a community preservation fund. Empowering local governments through this enabling legislation is consistent with New York State's long held tradition of respecting local home rules.

Legislative history

2009/2010 - S.381 Remained in the Senate Committee on Environmental Conservation 2007/2008 - S.716 Remained in the Senate Committee on Environmental Conservation 2005/2006 - S.6371 Remained in the Senate Committee on Environmental Conservation

Local fiscal implications

Up to a 2% surcharge on the real estate transfer tax, subject to voter approval.

Effective date

Immediately.