New York State Assemblyman Fred Thiele reported today that the Peconic Bay Region real estate transfer tax generated $141.35 million for 2023. Pursuant to public referendum in four (4) of the Peconic Region Towns (East Hampton, Shelter Island, Southampton, and Southold) the real estate transfer tax was increased from 2.0% to 2.5%, effective April 1, 2023. Exemptions from the tax were also increased as of that date. Contracts executed before April 1, 2023, were exempt from the additional 0.5% increase in the tax.

The revenue from the additional tax is dedicated to the creation of community housing. The County sends one lump sum check to each town each month. Each town is required to apportion the revenue between community housing and community preservation. This year it is estimated that about $10 million was collected in the four towns for housing purposes. Specific breakdowns by town for housing can be obtained from each town. Once all the exempt transactions have closed, 20% of the total revenue will be dedicated to housing. The remaining 80% will continue to be dedicated to CPF purposes.

Thiele stated that because of the changes in the tax rate and the exemptions, a fully accurate “apples to apples” comparison with prior years is difficult. Cumulative revenue in 2022 was $172.63 million. However, accounting for all the changes in the law, it is estimated the gross value of real estate transfers for 2023 is the lowest since the advent of the pandemic in 2020. Revenues peaked in 2021 and have declined each year since. However, the gross value of real estate transactions is still above real estate years preceding 2020, because while the number of transactions has declined, values generally have not.

Below are the revenues by Town for 2023:

Please click here to view cumulative revenues per year by Town since 1999.