Exempts primary residential property purchased by first-time homebuyers meeting certain income and purchase price requirements from the tax on real estate transfers in the town of Southold, county of Suffolk

BILL NUMBER:S6965

Title of bill

An act to amend the tax law, in relation to exempting primary residential property purchased by first-time homebuyers meeting certain income and purchase price requirements from the tax on real estate transfers in the town of Southold, county of Suffolk

Purpose

To amend subdivision 4 of Section 1449-ee of the tax law to add the town of Southold to those towns within the Peconic Bay region that have a first-time homebuyer's exemption from the Peconic Bay real estate transfer tax.

Summary of provisions

Section 1. Amends tax law 1449-ee(4) to add the town of Southold to the towns granting a first-time homebuyers exemption from the Peconic Bay Real Estate Tax;

Amends subdivision (a)(1) to continue Southampton, East Hampton and Shelter Island as towns where the price limit of the exemption will be 120 percent of the purchase price limit defined by SONYMA;

Adds subdivision (a)(2) to add Southold as a town where the maximum price to qualify for the exemption will be 60 percent of the purchase price limit defined by SONYMA.

Section 2. Sets forth the effective date.

Justification

The five towns of eastern Suffolk County comprise what is known as the Peconic Bay region. The region has a tax on real property transfers, the proceeds of which go to the respective towns' Community Preservation funds. In 2008, at the request of East Hampton, Southampton and Shelter Island, chapter 349 amended the tax law allowing an exemption from the tax in those three towns for first-time homebuyers subject to income and price limitations.

The town of Southold is now requesting to be included in the first-time homebuyers program at an eligible price limit of 60 percent of the SONYMA limit which would provide a maximum price of $399.048. This legislation will assist low and moderate income residents of Southold to have the opportunity to enjoy home ownership.

Legislative history

New bill.

Fiscal implications

None to the State.

Effective date

This act shall take effect immediately, provided, that the amendments to section 1449-ee of the tax law made by section 1 of this act shall not affect the repeal of such section and shall be deemed repealed therewith.