Log In   ·   Become A Member
http://www.hamptons.com/gallery/ads/2145.gif

Tax Break for First-time Homebuyers in Town of Southold

John A. Viteritti

Tucked in a cove, this spot on the North Fork, listed by Gary R. DePersia of The Corcoran Group, is simply idyllic. (Courtesty Photo)

Supervisor Scott Russell stated, "The Southold Housing Advisory Commission made this sensible recommendation to the Town Board and the ability to assist year-round residents who are first-time homebuyers is important and meaningful."

What Mr. Russell is referring to is an exemption from the Community Preservation Fund Transfer Tax that went into effect in 2000 on all transfers of real property within the five towns of Eastern Long Island. In Southold and Riverhead, the tax is 2% on transfers of unimproved property over $75,000, and improved property over $150,000, paid at the closing. In Shelter Island, Southampton, and East Hampton, the tax is 2% on transfers of unimproved properties over $100,000, and improved properties over $250,000. While either the buyer or seller may pay the tax, it is typically paid by the buyer.

Since 2008, qualified first-time homebuyers in Shelter Island, Southampton, and East Hampton whose household income did not exceeded $126,000 and the price of the home did not exceed $734,000 were eligible for the exemption. According to Philip Beltz, Special Projects Coordinator for the Town of Southold, effective September 23, 2014, qualified first-time homebuyers in the Town of Southold whose household incomes do not exceed $126,120 and prices of the home do not exceed $367,140, will be eligible for the exemption.

In the Towns that have already allowed the exemption, a purchaser could avoid having to pay the tax at closing by having made application after a signed contract to purchase the property had been entered into and before closing. It is also possible to apply retroactively for the exemption. Anyone desiring information about how the Town of Southold will process requests for the exemption should contact Mr. Beltz at 631-765-5806.

Before the proposed exemption was submitted to the Town Board and State Legislature for approval, the Housing Advisory Commission did an analysis of past purchases to determine the possible savings to qualified buyers at what cost to the Community Preservation Fund. It showed that the typical buyer would have saved approximately $2,000 in closing costs at a cost of approximately 3% to the Fund. The Commission, and subsequently the Town Board and Peconic Bay State legislators, Fred Thiele, Kenneth LaValle, and Anthony Palumbo, felt that the opportunity to assist buyers who wanted to live in Southold justified the loss of revenue, especially in light of the need for affordable housing.

While this step effort will not, in itself, provide sufficient opportunities for those families who choose to live and work in Southold, it is a step forward.


John is a St. John's University graduate, licensed Real Estate broker, DOS Certified Instructor, lecturer, teaches real estate license classes at Cook Maran Real Estate School, and is a well-respected consultant to the real estate industry. He previously taught at LIU and NYU. www.johnaviteritti.com




Related Articles:

Be the first to comment on this article. (Just fill out the form below)
 

Submit Your Comment

Please note, you are not currently logged in. Your comment will be submitted as a guest.
To submit your comment as a member, please click here.
Your Name:
Location:*
Comments:*
* Comments will be reviewed and posted in a timely fashion
* All fields are required
Question:*
What color is a firetruck?
(For spam prevention, thanks)
 
 
 
http://www.hamptons.com/gallery/ads/2003.gif
http://www.hamptons.com/gallery/ads/2328.gif
East End Tick Control
The East End's only New York State licensed dedicated tick and mosquito control specialists!

Southampton Masonry-Visiting the Southampton or the Wainscott locations is an exciting experience.
Southampton Masonry has been serving Long Island's masonry and tile needs since 1975. Delivering quality products from Manhattan to Montauk for over three decades. The company's continued success is due primarily to their number one priority: customer satisfaction, with a promise of prompt and courteous service from the professional, knowledgeable staff. Southampton Masonry has the largest inventory on the east end. As direct importers they can offer a large variety of the finest quality products at the most competitive pricing for both your interior and exterior projects.

CP Complete- Landscape Design & Construction
Paul Guillo And Chris Hall Two Of The Most Respected Names In The Community Together, they are partners in CP Complete. They bring their years of experience and integrity to creating and renovating luxury backyards.

Hamptons luxury real estate specialist for 33 years, Andrea Ackerman offers outstanding expertise in the field.
Hamptons luxury real estate specialist for 34 years, Andrea Ackerman offers outstanding expertise in the field. Trusted, experienced and successful, Andrea has solidified herself as the go-to broker of the Hamptons and a wholehearted advocate for her clients. A pioneer in the real estate industry on the East End of Long Island, she is driven by her passion for the business. Andrea is based in the Bridgehampton office of Brown Harris Stevens as a licensed real estate associate broker and consultant. Formerly, a principal partner and Senior Director at Brown Harris Stevens, Andrea now assists in developing their corporate strategy for the Hamptons region, advising other brokers and sales associates, as well as being one of the top producers and listors.

Southrifty Drug 54 Jagger Lane, Southampton Village
Southrifty Drug is a small, neighborhood pharmacy with limited shelf space, and we have to be very selective about which over-the-counter items we carry. As a result you'll find a no nonsense concentration of very effective, high quality and useful products on our shelves. In this new section, we feature a number of these products that we feel are especially worthy of your consideration.

Burner Law Group, P.C.
Burner Law Group, P.C. are full service elder law attorneys concentrating in the areas of Estate Planning, Trust and Estate Administration and Litigation, Special Needs Planning, Guardianship and Elder Law. Offices in East Setauket‚ NY, Westhampton Beach, NY, and New York, NY.

Calissa is Mykonos in the Hamptons.
Our menu focuses on seafood and Greek dishes such as salt baked fish, seafood pasta and Mediterranean mezze. Our wine list has been awarded The Award of Excellence from Wine Spectator and boasts the largest selection of rosé in the Hamptons. The name Calissa is derived from the brightest constellation in the summer sky.Our sister restaurants in New York are Amali and Bar Marseille, opening 2020 in the Rockaways. Calissa offers private dining spaces for groups from 10 to 300 people. To plan your next wedding, corporate event or gathering, please email events@calissahamptons.com. 1020 MONTAUK HIGHWAY, WATER MILL

Suburban Propane in Bridgehampton, New York has been serving proudly supporting our community for 90 years.
Suburban Propane has been serving the energy needs for home owners and business in the Hampton’s for decades. We offer friendly service by local professionals you know and trust, plus the peace of mind that comes from knowing we are among the leaders in the industry for safety.