The Community Preservation Fund program approved and established in 1998, was initiated to preserve open space and farmland in the five East End Townships (East Hampton, Riverhead, Shelter Island, Southhampton and Southold). The 2% real estate transfer fee in the Peconic Bay Region Community Preservation Fund goes to the Community Preservation Fund.
The Community Preservation Fund has been used for:
Purchasing environmentally sensitive lands as a way to protect water quality for drinking in the Peconic bays and local harbors.
Preserving and develop farmland to produce fruits and vegetables. This will aid in keeping taxes down.
Protecting, improving and restoring the Peconic Estuary.
What Qualifies as a tax?
The buyer of the real estate pays 2% when buying a new or used home or vacant property.
The first $250,000 (East Hampton, Southampton, Shelter Island) or $150,000 (Riverhead, Southold) of the purchase price of house or building Is exempt from this fee.
On an unimproved land, the first $75,000/$100,000 is exempt from the 2% transfer fee.
The tax fee paid in the town of the purchase will be used for that town only. The money raised will be used to protect the open space and farmland in that town.