Assemblyman Fred W. Thiele, Jr. (I, D, WF, REF - Sag Harbor) today reported that revenues for the Peconic Bay Community Preservation Fund (CPF) produced $98.97 million in revenue for the Peconic Bay Region in 2018, the third highest annual total in the 20 year history of the program. Only 2014 and 2015 produced more revenue. Revenue for 2018 was 3.2% HIGHER than in 2017. Revenues increased for East Hampton, Riverhead, and Southold. In fact, East Hampton and Southold generated the highest annual revenues in program history for each town. Revenues decreased in Shelter Island and Southampton. Since its inception in 1999, the Peconic Bay Regional Community Preservation Fund has generated $1.382 billion.

Thiele stated, “Overall real estate activity continued to be strong on the East End in 2018. However, while there was an increase in overall revenue, there were widely differing revenue trends among the towns. Further, the federal “Tax Cut and Jobs Act” took effect in January 2018, which included a $10,000 cap on the federal deduction for state and local taxes (SALT) and the changes in the mortgage interest deduction for new mortgages by reducing the mortgage debt deductibility limit from $1 million to $750,000. It is noted that mortgage rates also began to rise in the latter half of 2018. While the new tax law and interest rate increases may have adversely impacted segments of the real estate market by increasing the cost of buying a house, it did not appear to have an impact on luxury home sales, which are the primary driver of CPF revenues. Below are revenues by Town for 2018 compared with 2017 and the annual revenues by Town since 1999 (table attached).

                                   

PECONIC BAY REGION COMMUNITY PRESERVATION FUND
ACTUAL REVENUES
1999-PRESENT
MILLIONS OF DOLLARS