Add §6-w, Gen Muni L; add Art 33-C §§1575 - 1588, Tax L
Authorizes cities and towns, except a city with a population of one million or more, to establish community preservation funds; authorizes such cities and towns to impose a real estate transfer tax with revenues to be deposited in such funds; makes related provisions.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3533
SPONSOR: Levenberg TITLE OF BILL:
An act to amend the general municipal law, in relation to authorizing
cities and towns, except a city with a population of one million or
more, to establish community preservation funds; and to amend the tax
law, in relation to authorizing cities and towns, except a city with a
population of one million or more, to impose a real estate transfer tax
with revenues therefrom to be deposited in such funds
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this legislation is to authorize cities and towns, except
a city with a population of one million or more, to establish Community
Preservation Funds.
SUMMARY OF PROVISIONS:
Section 1: Adds a new section 6-w, Community Preservation Fund, to the
General Municipal Law, which authorizes towns and cities outside of the
City of New York to establish Community Preservation Funds by local law,
and to be funded through the imposition of a Real Property Transfer Tax
of up to 2%. Enumerates purposes and management of such fund.
Section 2. Adds a new article 33-c, Tax on Real Estate Transfers in
Cities and Towns, which authorizes eligible localities, acting through
its governing board, to adopt a local law, subject to mandatory referen-
dum, imposing separate real estate transfer tax and supplemental real
estate transfer tax for the purposes of funding an established community
preservation fund.
Section 3. Puts forth a severability clause. Section 4. Establishes the
effective date.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
Not application at this time.
JUSTIFICATION:
To reverse the trend of over development, we need to help towns and
cities (with fewer than 1,000,000 residents) to fund land preservation
with resources far beyond those that would otherwise be available
through existing property taxes. This legislation will not only do this,
but it will also provide a revenue source to implement projects that
would help improve water quality.
Specifically, this bill will authorize the governing boards of towns and
cities to establish a Community Preservation Fund (CPF) by local law.
With a mandatory referendum, residents of these municipalities. can
choose to impose a real estate transfer tax, subject to certain
exemptions and credits, to be paid by the purchaser of certain real
estate, at a rate not to exceed 2% of the purchase price. For each city
and town choosing to finance a land preservation program, there will be
a dedicated fund where the revenue from the real estate transfer tax
will be deposited for such purpose.
This dedicated fund would be used for the preservation of recreational,
historic and environmentally sensitive lands by a 'fee title' or 'lesser
interest' in such property. Up to 10% of the CPF may be used for the
management and stewardship of acquired properties.
Since the inception of the Peconic Bay Community Preservation Fund in
1999, the 2% Real Estate Transfer Tax for land acquisition for open
space, farmland and historic preservation, as well as recreational
purposes, has been successful in raising over $1.655 billion to protect
over 10,000 acres of land on the East End of Long Island. Since then,
similar authorization has been granted to several local governments
across our state on a case-by-case basis.
This legislation would extend this opportunity to designated cities and
towns throughout New York State, where protecting community character,
preserving open space and safeguarding water supplies are of extreme
importance.
PRIOR LEGISLATIVE HISTORY:
A.6257-A and S.4098-A of 2023/2024
A.763 and S.7041 of 2021/2022
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
The State will see no fiscal implication associated with this legis-
lation.
EFFECTIVE DATE:
This act shall take effect immediately.
