2023 New York Laws › TAX - Tax › Article 31-D - Tax on Real Estate Transfers in Towns in the Peconic Bay Region › 1449-EE - Exemptions.

* §  1449-ee.  Exemptions.  1.  The following shall be exempt from the
payment of the real estate transfer tax:
(a) The state of New York, or any of its agencies,  instrumentalities,
political  subdivisions,  or  public  corporations  (including  a public
corporation created pursuant to an agreement  or  compact  with  another
state or Dominion of Canada); and
(b)  The  United  Nations,  the United States of America or any of its
agencies or instrumentalities.
2. The tax shall not apply to any of the following conveyances:
(a) Conveyances to the United Nations, the United States  of  America,
the  state  of  New York, or any of their instrumentalities, agencies or
political subdivisions (or any public corporation,  including  a  public
corporation  created pursuant to agreement or compact with another state
or the Dominion of Canada);
(b) Conveyances which are or were used  to  secure  a  debt  or  other
obligation;
(c)  Conveyances  which,  without  additional  consideration, confirm,
correct, modify or supplement a deed previously recorded;
(d) Conveyances of real property without consideration  and  otherwise
than in connection with a sale, including deeds conveying realty as bona
fide gifts;
(e) Conveyances given in connection with a tax sale;
(f)  Conveyances  to  effectuate  a mere change of identity or form of
ownership or  organization  where  there  is  no  change  in  beneficial
ownership,  other  than conveyances to a cooperative housing corporation
of the real property comprising the cooperative dwelling or dwellings;
(g) Conveyances which consist of a deed of partition;
(h) Conveyances given pursuant to the federal bankruptcy act;
(i) Conveyances of real property which consist of the execution  of  a
contract  to  sell  real  property  without the use or occupancy of such
property or the granting of an option to purchase real property  without
the use or occupancy of such property;
(j)  Conveyances  of  real  property,  where the entire parcel of real
property to be conveyed is the subject of one or more of  the  following
development restrictions:
(1) agricultural, conservation, scenic, or an open space easement,
(2) covenants or restrictions prohibiting development,
(3) a purchase of development rights agreement,
(4)  a  transfer  of  development rights agreement, where the property
being conveyed has had its development rights removed,
(5) said real property is subject to the development restriction of an
agricultural district or  individual  commitment,  pursuant  to  article
twenty-five-AA of the agriculture and markets law,
(6)  real  property  subject  to any locally adopted land preservation
agreement, provided said exemption is included in the local law imposing
the tax authorized by this article;
(k) Conveyances  of  real  property,  where  the  property  is  viable
agricultural  land  as  defined  in  subdivision  seven of section three
hundred one of the agricultural and markets law and the entire  property
to  be  conveyed  is  to  be  made  subject  to  one  of the development
restrictions provided for in subparagraph two of paragraph (j)  of  this
subdivision  provided  that  said  development restriction precludes the
conversion of the property to a non-agricultural use for at least  three
years  from  the  date  of transfer, and said development restriction is
evidenced by an easement, agreement, or other suitable instrument  which
is  to be conveyed to the town simultaneously with the conveyance of the
real property; or
(l) 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.
(m)  Conveyances  of  real  property  to  any  tax exempt corporation,
incorporated pursuant to  the  not-for-profit  corporation  law  or  the
private  housing  finance law, where such conveyance is for the purposes
of providing affordable housing opportunities within the towns and  such
corporation  is  incorporated  for  the  purposes  of  providing housing
opportunities. For the purposes of this paragraph, "affordable  housing"
shall  mean  housing opportunities exclusively for town residents of the
towns whose income is at or below the median income for the town.
3. (a) In the towns of East Hampton, Shelter Island  and  Southampton,
an  exemption  of  four hundred thousand dollars shall be allowed on the
consideration of the conveyance of improved real property or an interest
therein and an exemption  of  one  hundred  thousand  dollars  shall  be
allowed  on  the  consideration  of  the  conveyance  of unimproved real
property.
(b) In the towns of  Riverhead  and  Southold,  an  exemption  of  two
hundred  thousand  dollars  shall be allowed on the consideration of the
conveyance of improved real property  or  an  interest  therein  and  an
exemption  of  seventy-five  thousand  dollars  shall  be allowed on the
consideration of the conveyance of unimproved real property.
(c)  The  exemption  granted  pursuant  to  the  provisions  of   this
subdivision  shall  only  apply  to conveyances for residential property
where the consideration is two million dollars or less.
4. Primary residential property purchased by one or more persons, each
of whom is a first-time homebuyer shall be exempt from  the  payment  of
the real estate transfer tax, in the towns of Southampton, East Hampton,
Shelter Island and Southold, provided that:
(a)  (1) in the towns of Southampton, East Hampton and Shelter Island,
the primary residential property is within one hundred fifty percent  of
the  purchase  price  limits  defined  by the state of New York mortgage
agency low interest rate mortgage program in the non-target  one  family
categories  for  Suffolk  county  in effect on the contract date for the
sale of such property;
(2) in the town of  Southold,  the  primary  residential  property  is
within  sixty  percent of the purchase price limits defined by the state
of New York mortgage agency low interest rate mortgage  program  in  the
non-target  one  family  categories  for Suffolk county in effect on the
contract date for the sale of such property; and
(b) the buyer's household income does not  exceed  the  income  limits
defined  by  the  state  of  New  York mortgage agency low interest rate
mortgage program  in  the  non-target,  one  and  two  person  household
category  for Suffolk county in effect on the contract date for the sale
of such property.
5. Such exemption shall be granted only upon application by the  owner
of such building on a form prescribed by the town. The application shall
be  filed  with the town. If satisfied that the applicant is entitled to
an exemption pursuant to  this  section,  the  town  shall  approve  the
application  and  the  conveyance  of  such primary residential property
shall be exempt from the  real  estate  transfer  tax  imposed  by  this
article.
* NB Repealed December 31, 2050