Assemblyman Fred W. Thiele, Jr. (I, D, WF-Sag Harbor) has introduced legislation in the State Assembly that would exempt conveyances of real property for open space, parks, or historic preservation purposes to any not-for-profit tax exempt corporation operated for conservation, environmental, or historic preservation purposes from State real estate transfer taxes.

Currently, there are two State real estate transfer taxes on such conveyances: (1) the general transfer tax at $2 per $500 of consideration and (2) the additional transfer tax on conveyances over $1 million at 1%. Such transactions are EXEMPT from the Peconic Bay Region CPF 2% transfer tax.

Thiele stated, “Under current law, whenever the Peconic Land Trust, the Nature Conservancy or any other not-for profit conservation, environmental, or historic preservation organization acquires land for preservation, including open space, farmland, or an historic landmark, State transfer taxes must be paid. Such a tax operates as a penalty to conservation. It makes no sense that a State which has a $300 million Environmental Protection Fund for land preservation and to assist the operations of local land trusts would at the same time tax their efforts to conserve. Our tax policy should be consistent with our environmental policy.”

For example, if a conservation organization were to purchase a nature preserve for $5 million, the conservation organization would be liable for a $70,000 tax bill to the State of New York.

Thiele added, “On eastern Long Island, most conservation sales are over $1 million and subject to both taxes. It makes no sense to tax transactions where private conservation organizations are doing the public good. The money can do more good for preservation than it can in the state general fund.”