Since 1998, New York’s Tax Law § 1449-aa et seq. has allowed the five East End towns to impose upon buyers of certain real estate in those towns a 2% real estate transfer tax (the “Peconic Bay real estate transfer tax”) in order to fund the Peconic Bay region community preservation fund established pursuant to Town Law § 64-e.
First-time homebuyers in the towns of East Hampton, Shelter Island and Southampton have long had the opportunity to apply for an exemption from the Peconic Bay real estate transfer tax. Now, first-time homebuyers in the town of Southold also have the opportunity to apply for an exemption. At this time, Riverhead is the only East End township without the benefit.
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. Please see New York’s Tax Law § 1449-ee and the East End town websites for additional information and application forms.