HomeMy WebLinkAboutLL-1998 #20Local Law Filing
N~.'~ ffORK STATE DEPARTMENT OF STATE
162 WASHINGTON AVENUE, ALBANy. NY 12~31
(Use thl~ form to file a local law with the Secretary of State.)
Text of law should be ~ven as amended. Do not include matter being eliminated and do not u~e
italics or underlining to indicate new matter.
local law
Be it enacted by the ....
o r _ _ .s..o..o.t..h._oj..d. .......................................................................
Town
Local Law'No .............. .10.~_~_ ................ of the year 19-9--8---
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includin9 the incorporated village's therein, with the revenues
.de__Ei_ved t,rom this t-a~.x-t.9-~-b-.e---d-d~-~o-s-~-t-e.-d-~-~--n~-t-h-e--S-o-pt-h-~!~-~o-~-D~-
Preservation Fund for the purpose of preservin9 open space and
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Town Board ......... of the
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~my ot.__.S.o..u._t_h.o. Ld. ............................................................. as ronows:
Town
IX)C. AL LAW NO. 20! OF 1998
A Local Law. imposing a two percent (2%) real estate transfer
tax on the conveyance of interests in real property in the Town of
Southold, including the incorporated villages therein, with the
revenues derived from this tax to be deposited in the Southold
Community Preservation Fund for the purpose of preserving open
space and historic places within the Town.
BE IT ENACTED by the Town Board of the Town of Southold as
follows:
(If additional space Is needed, attach pages the sam.- size ns this sher. t, and number each.)
DOS--~ (~-,. ?~t) (I)
The Southold Tovai-~ J°de is hereby amended to %~X a new Article
to Chapter 6, to be Article IV, 2% Real Estate Transfer Tax,
Article IV to-read as follows:
ARTICT~ IV
2% Real Estate Transfer Tax
6-66 through 6-69 (reserved)
6-70 ?.~.GISLATIVE FINDINGS:
The Town of Southold enjoys a worldwide reputation as a
community of great scenic beauty, rich in natural resources and
open spaces, including agricultural lands, woodlands, wetlands,
waterways, dunes, bluffs, and other natural features. The Town
also possesses a rich historic heritage as one of the oldest
colonial settlements in the State of New York and, indeed, in the
nation. Finally, because the second home industry and tourism are
such important components of the local economy, the Town must
preserve its scenic beauty and provide recreational areas in order
to continue to attract visitors.
The Town's natural and historic resources collectively provide
the people of Southold with an unequaled community character. In
fact, the Nature Conservancy has included the region which includes
Southold Town as one of its twelve "Last Great Places" in the
Western Hemisphere. The Town has done much to foster, protect, and
promote its community character. Southold enjoys a reputation as
being creative and innovative in the area of land use and land
conservation.
The Town is today under extreme development pressure, with
development out-pacing current conservation efforts. If
exceptional action is not taken, Southold's unique character may be
irretrievably lost and the substantial investment of the Town's
citizens in protecting that character made moot. New financial
resources are imperative if the Town is to preserve its special
identity.
Pursuant to ~ 64-e of the New York Town Law and Article 31-D
of the Tax Law, Southold Town is authorized to create and establish
a Community Preservation Fund, and to impose a two percent (2%)
real estate transfer tax, with the revenue derived from said tax to
be deposited into the Southold Co~unity Preservation Fuhd. The
creation of the fund and the imposition of the tax are subject to
mandatory referend~m. It is the purpose of this Local Law to
impose the 2% real estate transfer tax in order to place the
revenue derived from the tax in said dedicated fund.
~ la-
The Town Board~, .~'finds that this Local ~w an excellent
opportunity for achieving balance between development and
conservation which is needed to ensure the Town' s community
character.
6-71 through 6-74 (reserved)
6-75 Definitions.
As used in this chapter, unless otherwise expressly stated,
the following words and terms shall have the following meanings:
CONSIDERATION - shall mean the price actually paid or required
to be paid for the real property or interest therein,
including payment for an option or contract to purchase real
property, whether or not expressed in the deed and whether
paid or required to be paid by mo~ey, property, or any other
thing of value. It shall include the cancellation or
discharge of an indebtedness or obligation. It shall also
include the ~mount of any mortgage, purchase money mortgage,
lien, or other encumbrance, whether or not the underlying
indebtedness is assumed or taken subject to.
(1)
(2)
(3)
(4)
In the case of the creation of a leasehold interest or
the granting of an option with use and occupancy of real
property, consideration shall include, but not be
limited, to, the value of the rental and other payments
attribUtable to the use and occupancy of the real
property or interest therein, the value of any amount
paid for an option to purchase or renew, and the value
of rental or other payments attributable to the exercise
of any option to renew.
In the case of the creation of a subleasehold interest,
consideration shall include, but not be l~m~ted to, the
value of the sublease rental payments attributable to
the use and occupancy of the real property, the value of
any amount paid for an option to renew, and the value of
rental or other payments attributable to the exercise of
any option to renew, less the value of the remaining
prime lease rental payments required to be made.
In the case of a controlling interest in any entity that
owns real property, consideration shall mean the fair
market value of the real property or interest therein,
apportioned based on the percentage of the ownership
interest transferred or acquired in the entity.
In the case of an assignment or surrender of a leasehold
interest or the assignment or surrender of an option or
contract to purchase real property, consideration shall
not include the value of the remaining rental payments
required to be made pursuant to the terms of such lease-
or the amount to be paid for the real property pursuant-
to the terms of the option or contract being assigned or
surrendered.
-lb-
(5)
In the cas~ f (i.) the original conve.~ ~e of shares of
stock in a Cooperative housing corporafion in connection
wi~h the grant or transfer of a proprietary leasehold by
the cooperative corporation or cooperative plan sponsor
and (ii.) the subsequent conveyance by the owner thereof
of such stock in a cooperative housing corporation in
connection with the grant or transfer of a proprietary
leasehold for a cooperative unit other than an
individual residential unit, consideration shall include
a proportionate share of the unpaid principal of any
mortgage on the real property of the cooperative housing
corporation comprising the cooperative dwelling or
dwellings. Such share shall be determined by
multiplying the total unpaid principal of the mortgage
by a fraction, the numerator of which shall be the
number of shares of sto~ being conveyed in the
cooperative housing corporation in connection with the
grant or transfer of a proDrietary leasehold and the
denominator of which shall be the total number of shares
of stock in the cooperative housing corporation.
CONTROLLING INTEREST - shall mean (i.) in the case of a
corporation, either fifty percent (50%) or more of the total
combined voting power of all classes of stock of such
corporation, or fifty percent (50%) or more of the capital,
profits, or beneficial interest in such voting stock of such
corporation, and (ii.) in the case of a partnership,
association, trust, or other entity, fifty percent (50%) or
more of the capital, profits, or beneficial interest in such
partnership, association, trust or other entity.
CONVEYANCE - shall mean the transfer or transfers of any
interest in real property by any method including but not
limited to sale, exchange, assignment, surrender, mortgage
foreclosure, transfer in lieu of foreclosure, option, trust
indenture, taking by e~inent domain, conveyance upon
liquidation or by a receiver, or transfer or acquisition of a
controlling interest in any entity with an interest in real
property. Transfer of an interest in real property shall
include the creation of a leasehold or sublease only where
(i.) the sum of the term of the lease or sublease and any
options for renewal exceeds forty-nine (49) years, (ii.)
substantial capital improvements are or may be made by or for.
the benefit of the lessee or sublessee, and (iii.) the lease.
or sublease is for substantially all of the premises?
constituting the real property. Notwithstanding the f
foregoing, conveyance of real property shall not include a
conveyance made pursuant to devise, bequest or inheritance;
the creation, modificatign, extension, spreading, severance,
consolidation, assignment, transfer, release or satisfaction
of a mq. rtgage; a mortgage subordination agreement, a mortgage
severance agreement, or an instrument given to perfect or
correct a recorded morEgage; or a release of lien of tax
pursuant to this chapter or the Internal Revenue Code.
- lc-
FUND shall me .... the Southold Community ~.eservation FUnd
created and established by Article I of this Chapter pursuant
to ~ 64-e of the New York Town Law.
GRANTEE.- shall mean the person who obtains real property or
an interest therein as a result of a conveyance.
GRANTOR r_ shall mean the person making the conveyance of real
property or interest therein. Where the conveyance consists
of a transfer or an acquisition of a controlling interest in
an entity with an interest in real property, "grantor" shall
mean the entity with an interest in real property or a
shareholder or partner transferring stock or partneriship
interest, respectively.
%
INTEREST IN REAL PROPERTY - shall include title in fee, a
leasehold interest, a beneficial interest, an encumbrance,
development rights, air space and~air rights, or any other
interest with the right to use or occupancy of real property
or the right to receive rents, profits or other 'income derived
from real property. It shall also include an option or
contract to purchase real property. It shall not include a
right of first refusal to purchase real property.
PERSON - shall mean an individual, partnership, l~mited
liability company, society, association, joint stock company,
corporation, estate, receiver, trustee, a~signee, referee, or
any other person acting in a fiduciary or representative
capacity, whether appointed by a court or otherwise, any
combination of individuals, and any other form of
unincorporated 9nterprise owned or conducted by two (2) or
more persons.
REAL PROPERTY shall mean every estate or right, legal or
equitable, present or future, vested or contingent, in lands,
tenements or heredit~ments, including buildings, structures
and other improvements thereon, which are located in whole or.
in part within the Town. It shall not include rights to
sepulture.
RECORDING OFFICER - shall mean the County Clerk of the COunty
of Suffolk.
TOWN - shall mean the Town of Southold.
TOWN SUPERVISOR shall mean the Town Supervisor of the Town
of Southold.
TREASURER (COUNTY TREASURER) - shall mean the treasurer of the
County of Suffolk.
~§ 6-76 through 6-79 (Reserved.)
~ 6-80 L~osition of real estate transfer tax.
There is hereby imposed in the Town of Southold a tax on each
conveyance of real property or interest therein where the
- ld -
consideration exceeds ive hundred dollars ($500~ !), the rate of
such tax to be two ~ercent (2%) of the consideration for such
conveyance. Revenues from such tax shall be deposited in the
Southold Community Preservation Fund established by Article I of
this chapter.and may be used solely for the purposes of said fund.
Such tax shall.'apply to any conveyance occurring on or after March
1, 1999, but shall not apply to conveyances made on or after such
date pursuant to binding written contracts entered into prior to
such date, provided that .the date of execution of such contract is
confi£med by independent evidence such as the recording of the
contract, payment of a deposit, or other facts and circumstances as
determined by the County Treasurer.
6-81 through 6-84. (Reserved.)
§ 6-85. Payment of tsx.
The real estate transfer tax~ imposed pursuant to this
article shall be paid to the Treasurer,- or to the
Recording Officer acting as the agent of the Treasurer
upon designation as such agent by the Treasurer. Such
tax shall be paid at the same time as the real estate
transfer tax imposed by Article 31 of the New York Tax
Law is required to be paid. Such Treasurer or Recording
Officer shall endorse upon each deed or instrument
effecting a conveyance a receipt for the amount of the
tax so paid.
A return shall be required to be filed with such%'
Treasurer or Recording Officer for purposes of the real~'
estate transfer tax imposed pursuant to this article at
the same time as a return is required to be filed for
purposes of the real estate transfer tax imposed by
Article 31 of the Tax Law. The Treasurer shall
prescribe the form of return, the information that it
shall contain, and the documentation that shall
accompany the return. Said form shall be identical to
the real estate transfer tax return required to be filed
pursuant to ~ 1409 of the Tax Law, except that the
Treasurer shall adapt said form to reflect the
provisions of this Article which are inconsistent with,
different from, or in addltion to the provisions of
Article 31 of the Tax Law. The real estate transfer tax
returns required to be filed pursuant to this section
are required to be preserved for three (3) years and
thereafter until such Treasurer or Recording Officer
orders them to be destroyed.
The Recording Officer shall not record an. instrument
effecting a conveyance unless the return required by
this section has been filed and unless the tax imposed
pursuant to this article shall have been paid as
provided in this section.
6-86 through 6-89.
(Reserved.)
- le-
6-90.
A.
The real estate transfer tax required hereunder shall be
paid by the grantee. If the grantee has failed to pay
th~ tax imposed pursuant to this article, or if the
grantee is exempt from such tax, the grantor shall have
the. duty to pay the tax. Where the grantor has the duty
to pay the tax because the grantee has failed to pay the
tax, such tax shall be the joint and several liability
of the grantee and grantor.
For the purpose of the proper administration of this
article and to prevent evasion of the tax hereby
imposed, it shall be presumed that all conveyances are
taxable. Where the consideration includes property
other than money, it shall be presumed that the
consideration is the fair n~.rket value of the real
property or interest therein. These presumptions shall
prevail until the contrary is proven, and the burden of
proving the contrary shall be on the person liable for
payment of the tax.
6-91 through 6-94. (Reserved.)
6-95.
A.
Exemptions from tax.
The following shall be exempt from payment of the real
estate transfer tax imposed by this article:
(i)
The State of New York or any of its agencies,
instrumentalities, political subdivisions, or
public corporations (including a public corporation
created pursuant to agreement- or co~pact with
another state or the Dominion of Canada);
(2) The United Nations; The United States of America
and any of it~ agencies or instrumentalities.
Exemption for certain conveyances. The real estate
transfer tax imposed by this article shall not apply to
any of the following conveyances:
(1)
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).
(2)
(3)
Conveyances which are or were used to secure a debt
or other obligation.
Conveyances which, without
consideration, confirm, correct,
supplement a deed previously recorded.
additional
modify, or
-lf-
(4)
Conve~-~ces of real property witL_ ~t consideration
and otherwise than in connection with a sale,
including deeds conveying realty as bona fide
gifts.
(5) Conveyances given in connection with a tax sale.
(6)
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.
(7) Conveyances which consist of a deed of partition.
(8) Conveyances given pursuant
Bankruptcy Act. ~
to the Federal
(9)
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.
(10) Conveyances of real property, where the entire
parcel of real property to be conveyed is the
subject of one (1) or more of the following
development restrictions:
(a) An agricultural, conservation, scenic, or an
open space easement;
(b)
(c)
(d)
(e)
Recorded covenants or restrictions prohibiting
development;
A purchase of development rights agreement.
A transfer of development rights agreement,
where the property being conveyed has had its
development rights removed.
said real property is subject to the
development restriction of an agricultural
district or individual commitment, pursuant to
Article 25-AA of the New York Agriculture and
Markets LaW.
(f)
real property subject to any locally adopted
land preservation agreement including
agreements under the Town of Southold'S Open
Space Preservation and AgricuItural Lands
Preservation Laws and, provided said exemption
is included in the local law imposing the tax
authorized by this article;
(11) Convert.ices of real property, whe~.Tthe property is
viable agricultural land as defined i~ subdivision
(7) of ~ 301 of the Agriculture and Markets Law and
the entire property to be' conveyed is to be made
subject to one of the development restrictions set
forth in the preceding paragraph 6-95 (B) (t0),
provided that said development restrictions
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 conveyed to the Town
simultaneously with the conveyance of the real
property; or
12. Conveyances of real property for open space, parks,
or historic preservation purposes to any not-for-
profit tax-exempt cokporation operated for
conservation, environmental, or historic
preservation purposes.
6-96 through 6-99. (Reserved.)
6-100. Additional exemptions.
A. There shall be allowed an exemption of one hundred fifty
thousand dollars ($150,000.00) on the consideration of the
conveyance of improved real property or an interest therein.
B. There shall be allowed an exemption of seventy-five
thousand dollars ($75,000.00) on the consideration of the
conveyance of unimproved real property or an interest therein.
6-101 through 6-104. (Reserved.)
6-105. Credit
A grantee shall be allowed a credit against the tax due on a
conveyance of real property to the extent that tax was paid by such
grantee on a prior creation of a leasehold of all or a portion of
the same rea% property or on the granting of an option or contract
to purchase 'all or a portion of the same real property by such
grantee. Such credit shall be computed by multiplying the tax paid
on the creation of the leasehold or on the granting of the option
or contract by a fraction, the numerator of which is the value of
the consideration used to compute such tax paid which is not yet
due to such grantor on the date of the subsequent conveyance (and%.
which such grantor will not be entitled to receive after such date)'
and the denominator of which is the total value of the ~
consideration used to compute such tax paid.
6-106 through 6-109. (Reserved.)
- lb-
6-110.
A.
Cooperative housing corporation transfers.
Notwithstanding the definition of "controlling interest"
connained in ~ 6-75 hereof or anything to the contrary
found in the definition of "conveyance" contained in
said section, the tax imposed pursuant to this article
shall apply to the following:
(1)
The original conveyance of shares of stock in a
cooperative housing corporation in connection with
the grant or transfer of a proprietary leasehold by
the cooperative corporation or cooperative plan
sponsor.
(2)
The subsequent conveyance of such stock in a
cooperative housing corporation in connection with
the grant or transfer of a proprietary leasehold by
the owner thereof. With respect to any such
subsequent conveyance where the property is an
individual residential unit, the Consideration for
the interest conveyed shall exclude the value of
any liens on certificates of stock or other
evidences of an ownership interest in and a
proprietary lease from a corporation or partnership
fo~aLed for the purpose of cooperative ownership of
residential interest in real estate remaining
thereon at the t~me of conveyance.. In determining
the tax on a conveyance described in paragraph A
(1) above, a credit shall be allowed for a
proportionate part of the amount of any tax paid
upon the conveyance to the cooperative housing
corporation of the real property comprising the
cooperative dwelling or dwellings to the extent
.t~.at such conveyance effectuated a mere change of
identi~y or form of ownership of such property land
not a change in the beneficial ownership of such
proper~y. The amount of credit shall be deter~ned
by multiplying the amount of tax ipaid upon the
cOnveyance to the cooperative housing corporation
by a Percentage representing the extent to which
such conveyance effectuated a mere change, of.
identity or form of ownership and not a change in'
the beneficial ownership of such property, and then
multiplying' the resulting product by a fraction,
the n~merator of which shall be the number of
Shares of stock conveyed in a transaction described
in paragraph A (1) and the denominator of which
shall be the totai number of shares of stock of the
cooperative housing corporation (including any
stock held by the corporation). In no event,
however, shall such credit reduce the tax on a
conveyance described in paragraph A (I) below zero,
nor shall any such credit be allowed for a tax paid
more than twenty-four (24) months prior to the date
on which occurs the first in a series of
conveyances of shares of stock in an offering of
cooperative housing corporation shares described in
paragraph A (1).
Every cooperative housing corporation shall be
required to file an information return with the
County Treasurer by July 15th of each year covering
the preceding period of January 1 through June 30
and by January 15th of each year covering the
preceding period of July 1 through December 31.
-The return shall contain such information regarding
the conveyance of shares of stock in the
cooperative housing corporation as the Treasurer
may deem necessary, including, but not limited to,
the names, addresses, and employee identification
numbers or social security numbers of the grantor
and the grantee, the number of shares conveyed, the
date of the conveyance, and the consideration paid
for such conveyance.
6-111 through 6-114. (Reserved.)
6-115. Designation of agent b~County Treasurer.
The County Treasurer is authorized by law to designate the
Recording Officer to act as his or her agent for the purpose of
collecting the tax imposed by this article. The Treasurer shall
provide for the manner in which such person ~y be designated as
his or her agent subject to such terms and conditions as the
treasurer shall prescribe. The real estate transfer tax shall be
paid to such agent as provided in ~ 6-85 hereof.
6-116 through 6-119. (Reserved.)
6-120. Liability of Recording Office=.
A Recording Officer shall not be liable for any inaccuracy in
the amount of tax imposed pursuant to this article that he or she
shall collect so long as he or she shall compute and collect such
tax on the amount of consideration or the value of the interest
conveyed as such amounts are provided to him or her by the person
paying the ta~.
§§ 6-121 through 6-124. (Reserved.)
6-125. Refunds.
Whenever the Treasurer shall determine that any moneys
received under the provisions of this article were paid in error,
he or she may cause such moneys to be refunded pursuant to such
rules and regulations as he or she may prescribe, provided that any
application for such Lefund is filed wi~h the Treasurer within two
(2) years from the date the erroneous payment was made.
6-126 through 6-129. (Reserved.)
6-130. Deposit and disposition of revenue.
All taxes, penalties, and interest imposed by the Town
under the authority of this article, which are collected
by the Treasurer or his or her agents, shall be
deposited in a single trust fund for the Town and shall
be kept in trust and separate and apart from all other
monies in possession of the Treasurer. Moneys in such
fund shall be deposited and secured in the manner
provided by ~ 10 of the General Municipal Law. Pending
expenditure from such fund, moneys therein may be
invested in the manner provided in § 11 of the General
Municipal Law. Any interest earned or capital gain
realized on the moneys so deposited or invested shall
accrue to and become part of such fund.
Be
The Treasurer shall retain such amount as he or she may
determine to be necessary for refunds with respect to
the tax imposed by the Town under the authority of this
article, out of which the Treasurer shall pay any
refunds of such taxes to those taxpayers entitled to a
refund pursuant to the provisions of this article.
Co
The Treasurer, after reserving such funds, shall on or...
before the twelfth day of each month, pay to the Town'
Supervisor the taxes, penalties, and interest imposed by:f
the Town under the authority of this article, collected
by the Treasurer pursuant to this article during the
proceeding calendar month. The amount so payable .shall
be certified to the Town Supervisor by the Treasurer,
who shall not be held liable for any inaccuracy in such
certification. However, any such certification may be
based on such information as may be available to the
Treasurer at the time such certification must be made
under this section.
De
Where the amount so paid over to the Town in any such
distribution is more or less than the amount due to the
Town, the amount of the overpayment or underpayment
shall be certified to the Town Supervisor by the
Treasurer, who shall not be held liabls for any
inaccuracy in such certification. The amount of the
underpayment or overpayment sh~ll be so certified to the
Town Supervisor as soon after the discovery of the
overpayment or underpayment as reasonably possible and
subsequent payments and distributions by the Treasurer
to such Town shall be adjusted by subtracting the amoUnt
of any such overpayment from or by adding the amount of
any such underpayment to such number of subsequent
payments and distributions as the Treasurer and Town
Supervisor shall consider reasonable in view of the
underpayment or overpayment and all other facts and
circumstances.
E4
All monies received from the Treasurer by the Town
Supervisor shall be deposited in the Southold Community
Preservation Fund established pursuant to Article I of
this chapter and Town Law ~ 64-e.
6-131 through 6-134. (Reserved.)
6-135. Judicial review.
Any final determination of the amount of any tax payable
under this article shall be reviewable for error,
illegality, or unconstitutionality, or any other reason
whatsoever, by a. proceeding under Article 78 of the
Civil Practice Law and Rules if application therefor is
made to the Supreme Court within four (4) months after
the giving of the notice of such final detea~ination;
provided, however, that any such proceeding under.
Article 78 of the Civil Practice Law and Rules shall not?
be instituted unless:
(1)
The amount of any tax sought to be reviewed, with
such interest and penalties thereon as may be
provided for by this local law, shall be first
-
deposited and there is filed an undertaking, issued
by a surety company aUthorized to transact business
in New York State and approved by the State
Superintendent of Insurance as to solvency and
responsibility, in such amount as a Justice of the
Supreme Court shall approve, to the effect that,: if
such proceeding shall be dismissed or the tax
confirmed, the petitioner will pay all costs and
charges which may accrue in the prosecution of such
proceeding; or
Bo
(2) At the ~option of the petitioner, such undertaking
may be in a sum sufficient to cover the taxes,
interest, and penalties stated in such
determination, plus the costs and charges ~hich may
accbue against the petitioner in the prosecution of
the proceeding, in which event the petitioner shall
not be required to pay such taxes, interest, or
penalties as a condition precedent to the
application.
.Where any tax imposed hereunder shall have been
erroneously, illegally, or unconstitutionally assessed
or collected, and application for the refund or revision
thereof duly made to the Treasurer, and such Treasurer
shall have made a determination denying such refund or
revision, such determination shall be reviewable by a
proceeding under Article 78 of the Civil Practice Law
and Rules; provided, however, that:
(1) Such proceeding is instituted within four (4)
months after the giving of the notice of such
denial;
(2) A final determination of tax due was not previously
made; and
(3)
An undertaking is filed with the Treasurer in such
amount and with such sureties as a Justice of the
Supreme Court shall approve, to the effect that if
such proceeding is dismissed or the tax confirmed,.
the petitioner will pay all costs and charges which%
may accrue in the prosecution of such proceeding.
6-136 through 6-139. (Reserved.)
- lm-
§ 6-140. Apportionment of consideration subject to tax for
property located only partly within Town.
Where real property is situated partly within and partly
without the boundaries of the Town, the consideration
subject to tax is such part of the total consideration
as is attributable to the portion of such real property
situated with the Town or to the .interest in such
portion. If the consideration attributable to the
property located in the Town is set forth in the
contract, such amount may be used to compute the tax
due.
Be
Co
If the 'contract does not set forth the amount of
consideration attributable to the portion of real
property or interest therein situated within the TOwn,
the consideration shall be reasonably allocated between
the portion of such property or interest therein
situated within the Town and the portion of such
property or interest therein situated without the Town.
If the grantor and the grantee enter into a written
agreement, signed by both the grantor and the grantee,
which sets forth a reasonable allocation of
consideration, that allocation of consideration may be
used to compute the tax due. If the grantor and the
grantee do not enter into such an agreement, or if the
allocation of consideration set forth in such agreement
is deemed unreasonable by the Treasurer, the allocation
of consideration musk be computed by multiplying the
amount of c~nsideration by a fraction, the numerator of
which is the fair market value of the real property 0r
interest therein situated within the Town, and the
denominator of which is the total fair market valus of
all the real property or interest therein being
conveyed. Except in the case of a transfer or
acquisition of a controlling interest where
consideration means fair market value of the real
property or interest therein, the tax shall be computed
on the allocated portion of the actual consideration
paid, even if that amount is greater or less than the
fair market value as determined! by appraisal.
Where the methods provided under this section do not
allocate the consideration in a fair and equitable
manner, the Treasurer may require the grantor and
grantee to allocate the consideration under such method
as he prescribes, so long as the prescribed method
results in a fair and equitable allocation.
6-141 through 6-144. (Reserved.)
6-145. Detez~nation of tax; petition to Town Supervisor.
ao
If a return required by this article is not filed, or if
a return when filed is incorrect or insufficient, the
amount of tax due shall be determined by the Treasurer
from such records or information as may be obtainable,
including the assessed valuation of the real property or
interest therein and other appropriate factors. Notice
of such determination shall be given to the person
liable for the payment of the tax. Such determination
shall finally and irrevocably fix the tax unless the
person against whom it is assessed, within ninety (90)
days after the giving of notice of such determination,
shall petition the Town Board for a hearing, or. Unless
the Treasurer, on the Treasurer's own motion, shall
redetermine the same. The Towh Board may designate, in
writing, a hearing officer to hear such an appeal, which
hearing officer shall file a written report and
recommendation with the Town Board. In any case before
the Town Board under this article, the burden of proof
shall be on the petitioner. After such hearing, t~e
Town Board shall give notice of the de%ermination to the
person against whom the tax is assessed and to the
Treasurer. Such determination may be reviewed in
accordance with the provisions of § 6-135 of this
article. A proceeding for judicial review shall not be
instituted unless:
(i)
The amount of any tax sought to be reviewed,
with penalties and interest thereon, if any,
shall be first deposited with the Treasurer
and there shall be filed with the Treasurer an
undertaking, issued by a surety company
authorized to 'transact business in New York
State and approved by the State Superintendent
of Insurance as to solvency and.
responsibility, in such amount and with such~
sureties as a Justice of the Supreme Court~'
shall approve, to the effect that if such
proceeding shall be dismissed or the tax
confirmed, the petitioner will pay all costs
- lo-
and charges which may accrue
prosecution of the proceeding; or
in the
(2)
At the option of the petitioner, such
undertaking filed with the Treasurer may be in
a sum sufficient to cover the taxes,
penalties, and interest thereon stated in such
decision, plus the costs and charges which may
accrue against him in the prosecution of the
proceeding; in which event, the petitioner
Shall not be required to deposit such taxes,
penalties, and interest as a condition
precedent to th9 commencement of the
proceeding.
Bo
A person liable for the tax imposed by this article
(whether or not a determination assessing a tax pursuant
to subsection A hereof has been made) shall be entitled
to have the tax due finally and irrevocably fixed prior
to the ninety (90) day period referred to in subsection
A by filing with the Treasurer a signed statement
consenting thereto, in writing and in such form as the
Treasurer shall prescribe.
The remedies provided by this section a~d §~ 6-125, 6-
1~0 and 6-135 of this article shall be the exclusive
remedies available to any person for the review of tax
liability imposed by this article.
6-146 thmough 6-149. (Reserved.)
6-150. Procccdings to recover ts_x due.
Whenever any person shall fail to pay any tax, penalty,
or interest imposed by this article, the Town Attorney
shall, upon-the request of the Treasurer, bring or cause
to be brought, an action to enforce the payment of the.
same on behalf of the Town, in any court of the State of
New York or of any other state or of the United States.
As an additional and alternative remedy, the Treasurer'..
may issue a warrant, directed to the Sheriff of Suffolk'
County, commanding him to levy upon and sell any real:'
and personal property of a grantor or grantee liable for
the tax which may be found within the County, for
payment of the amount thereof, with any penalty and
interest and the cost of executing the warrant, and to
-
return such warrant to the Treasurer the money collected
by virtue thereof within sixty (60) days after the
receipt of the warrant. The Sheriff shall, within five
(5) days after the receipt of the warrant, file with the
Clerk a copy thereof, and thereupon such Clerk shall
enter into the judgment docket the name of the person
mentioned into the warrant and the amount of the tax,
penalty, and interest for which the warrant is issued.
Such lien shall not apply to personal property unless
such warrant is filed with the Department of State. The
Sheriff shall then proceed upon the warrant in the same
manner ~nd with like effect as that provided by law in
respect to executions issued against property upon
judgments of a court of re~ord, and for services in
executing the warrant he shall be entitled to the same
fees, which he may collect in the same manner. In the
discretion of the Treasurer, a warrant of like terms',
force, and effect may be issued and directed to any
officer or employee of the county; and in the execution
thereof, such officer or employee shall have all the
powers conferred by law upon Sheriffs, but shall be
entitled to no fee or compensation in excess of the
actual expenses paid in the performance of such dusy.
Upon such filing of a copy of a warr~t, the Treasurer
shall have the same remedies to enforce the amount due
thereunder as if the County of Suffolk had recovered the
judgment therefor.
6-151 through 6-154. (Reserved.)
6-155. Interest and civil penalties.
Any grantor or grantee failing to file a return or to
pay any tax within the time required by this article
shall be subject to a penalty of ten percent (10%) of
the amount of the tax due plus an interest penalty of
two percent (2%) of such amount, for each month of delay
or fraction thereof after the expiration of the first
month after such return was required to be filed or such
tax became due; such interest penalty shall not exceed
twenty-five percent (25%) in the aggregate. If the..~
Treasurer determines that such failure or delay was due'
to reasonable cause and not due to willful neglect, thef
Treasurer shall remit, abate, or waive all of such
penalty and interest penalty.
- lq-
If any amounu of tax is not paid on or before the last
date prescribed in ~ 6-85 hereof for payment, interest
on such amount at the rate of ten percent (10%) per
mo~th shall be paid for the period from such last date
to the date paid.
The penalties and interest provided for in this section
shall be paid to the Treasurer and shall be determined,
assessed, collected, and distributed in the same manner
as the tax imposed by this article and any reference to
tax in this article shall be deemed to include the
penalties and interest imposed in this section.
6-156 through 6-159. (Reserved.)
§ 6-160. Confidentialit~of tz~ansfer tsx returns.
Except in accordance with proper judicial order or as
otherwise provided by law, it shall be unlawful for any
officer or employee of the County or Town, or any
person engaged or retained on an independent contract
basis, to divulge or make known in any manner the
particulars set forth or disclosed in any return
required under this article. However, nothing in this
section shall prohibit the Re~ording Officer from making
a notation on an instrument effecting a conveyance
indicating the amount of tax paid. No recorded
instrument effecting a conveyance shall be considered a
return for the purposes of this section.
The officers charged with the custody of such returns
shall not be required to produce any of them or evidence
of anything contained in them in any actio~ or
proceeding in any court, except on behalf of the Town in
any action or proceeding involving the collection of a
tax due under this article to which the County or Town
or an officer or employee of the County or Town is a
party or a claimant, or on behalf of any party to any
action or proceeding under the provisions of this
article when the returns or facts shown thereby are
directly involved in such action or proceeding; in an~
of which events the court may require the production of?
and may admit in evidence so much of said returns or off
the facts shown thereby as are pertinent to the action
or proceeding and no more.
Nothing herein shall be construed to prohibit the
delivery to a grantor or grantee of an instrument
effecting a conveyance, or to the duly authorized
representative of such grantor or grantee, of a
certified copy of any return filed in connection with
such instrument or to prohibit the publication of
statistics so classified as to prevent the
identification of particular returns or the items
thereof or to prohibit the inspection by the legal
representatives of the County or Town of the return of
any taxpayer who shall bring action to se~ aside or
review the tax based thereon.
D. Any officer or employee of the Town who willfully
violates ~he provisions of this section shall be
dismissed from office and be incapable of holding any
public office in the State for a period of five (5)
years thereafter.
~6-161 through 6-164 (reserved)
§6-165 INTERGOVERNMENTAL AGREEMENT:
The Town Board shall be authorized to, by resolution, enter
into any intergovernmental agreement necessary with the County of
Suffolk or any successor county, for the effective and efficient
administration and enforcement of this local law.
6-166 through 6-169 (reserved)
6-170 SEVERABILITY:
If any clause, sentence, paragraph, section, or part of this
Article shall be adjudged by any court of competent jurisdiction to
be invalid, such judgment shall not affect, impair, or invalidate
the remainder thereof, but shall be confined in its operation to
the clause, sentence, paragraph, section, or part thereof directly
involved in the controversy in which such judgment shall have been
rendered.
6-171 through 6-174 (reserved)
6-175 EFFECTIVE DATE:
This Local Law is subject to a mandatory referendum as set
forth in ~1449-bb of Article 31-D of the Tax Law. This Local Law
shall take effect on March 1, 1999, after after approval at the
-
general election to be held on November 3, 1998 by the affirmative
vote of a majority of the qualified electors of the Town of
Southold and filing with the Secretary of State; and provided
further that the real estate transfer tax imposed by this Article
shall expire and be deemed repealed as to any conveyance taking
place after DAcember 31, 2010.
baeth A Neville
Southold Town Clerk
August 25. 1998
- lt-
(Corn Dlete the certification in the paragraph that applies to the filing of this local law and
strike out that which is not applicable.)
(Final adoption by li~cal legislative body only.)
I hereby certify that the local law annexed hereto, designated as local law No ..... : .............................. of 19--~-~.
of the (<~a~l~,_~)~l'own)('~l!g0g~ of .......................................................... was duly passed by the
................................................ on ................. 19 ...., in accordance with the applicable provisions of law.
2. (Passage by local legislative body with approval, no disapproval or repassage after disapproval
by the Elective Chief Executive Officer*.) ..
I hereby certify that the local law annexed hereto, designated as local law No .................... '-:-- .........of 19-~---
of the (County)(City)(Town)(Village) of ................................................................ was duly passed by the
............................................... on .................. 19 ---, and was (approved)(not app~ved)(repassed after
(Name of. Ltg~lati~e Body)
disapproval) by the .................................................. and was deemed duly adopted on ............... 19 .... ,
(Elective Chi~f E.r~cutlve
in accordance with the applicable provisions of law.
3. (Final adoption by referendum.)
I hereby certify that the local law annexed hereto, designated as local law No .... 2.0 .......................... of 19-M~-
of the (C.~emyXC&~)~own)(Xrd4age) of ........ $.o_ulhoic~ ........................................... was duly passed by the
.... Io_~n_.B_o.a_r. ct ............................ on _.,~.o_~.u~_t_2~. 19-911, and was (approved)0~k~R~g~R~t-AaxCn~r
~Name of Leggrladv¢ Body)
&/xap~mx~3~rby the.-Supervisor ............ on.Au§us(-25-.- 1958-. Such Iocat tawwas submined
(Elective Chief ~zecuti~e Of Jicer*)
to the people by reason of a (mandatory)~.rmisMve-) referendum, and received the affirmative vote of a majority of
the qualified electors voting thereon at the (general)(speeiatXa~nuai) election held on blct¥_elIt[~_~r__~_, 19-_9.8. , in
accordance with the applicable provisions of law.
4. (Subject to permissive referendum and final adoption because no valid petition wa~ fried requesting
referendum.)
I hereby certify that the local law annexed hereto, designated as local law No .................................. of 19 ......
of the (County)(City)(Town)(Village) of .............................................................. was duly passed by the
................................................... on .................. 19 ...., and was (approved)(not approved)(repassed after
(Name of LegtMattv¢ 8o~.v)
disapproval) by the .................................................. on .................. 19 .... Such local law was subject to
permissive referendum and no valid petition requesting such referendum was filed as of .................. 19---- , in
accordance with the applicable provisions of law.
· Elective Chief Executive Officer means or includes the chief executive officer of a county de.ted on a county-
wide basis or, If there be none, the chairperson of the county legislative body, the mayor otra city. or village, or
the supervisor of a town where such officer is vested with the power to approve or veto local laws or ordinances.
(2)
$. (City local law concerning Charter revision proposed by petition.)
I hereby certify that the local law annexed hereto, designated aa local law No ................................... of 19 ......
of the City of ............................................. having been submitted to referendum pursuant to the provisions of
section (36)(37) o£ the Municipal Home Rule Law, and having received the aff'u-mative vote of a maiority of the
qualified electors of such city voting thereon at the (special)(general) election held on ................... 19 .... .
became operative.
6. (County local law concerning adoption of Charter.)
I hereby certify that the local law annexed hereto, designated aa local law No ................................... of 19 ......
of the County of ................................................... State of New York, having been submitted to the electors
at the General Election of November ...................... 19 .... , pumuam to subdivisions 5 and 7 of section 33 of the
Municipal Home Rule Law, and having received the ~ffirmative vote ora majority of the qualified electors of the cit-
ies of said county as a unit and a majority of the qualified electors of the tom of said county considered aa a unit
voting at said general election, became operative.
(If any other authorized form of final adoption has been followed, please provide an appropriate certification.)
(Seal)
I further certify that I have compared the preceding local law with the original on file in this office and that the same
is a correct transcript therefrom and of the whole of such original local law, and was finally adopted in the manner in-
dicated in paragraph-,_.l ....... , above. ~
Elizabeth A. Neville, Town Clerk
Date: 11 / 19/98
(Certffication to be executed by County Attorney, Corporation Counsel, Town Attorney, Village Attorney or
other authorized attorney of locality.)
ST~T~ OF ~mv'~:FO LK
COUNTY OF
I, the undersigned, hereby certify that the foregoing local law contains the correct text and that all proper proceedings
have been had or taken for the enactment of the local law~~reto. ~c,~
Title
lief of
Town
Southold
Date: 11/19/98
(3)
ALEXANDER F. TREADWELL
Secretary of STate
STATE OF New YOrk
DEPartmENt Of STATE
ALBANY, NY 12231-0001
December 15, 1998
ELIZABETH A. NEVILLE
TOWN HALL
53095 MAIN ROAD
SOUTHOLD, NY 11971
RE: Town of Southold, Local Law 20, 1998, filed 12/09/98
The above referenced material was received and filed by this office as indicated.
law filing forms will be forwarded upon request.
Additional local
Sincerely,
Janice G. Durfee
Principal File Clerk
Bureau of State Records
(518) 474-2755
JGD: ml
printed on recycled Paper
PUBLIC HEARING
SOUTHOLD TOWN BOARD
AUGUST 18, 1997
8:20 P.M.
ON A PROPOSED "LOCAL LAW IN RELATION TO IMPOSING A 2% REAL
ESTATE TAX FOR THE PRESERVATION OF OP.EN SPACE WITH THE TOWN
OF SOUTHOLD (TO BE KNOWN AS THE "SOUTHOLD COMMUNITY
PRESERVATION FUND") "
Present: Supervisor Jean W. Cochran
Councilwoman Alice J. Hussie
Councilman John M. Romanelli
Councilman Brian G. Murphy
Town Clerk Elizabeth A. Neville
Town Attorney Gregory F. Yakaboski
Absent: Justice Louisa P. Evans
Councilman William D. Moore
SUPERVISOR COCHRAN: We have one more section to go through, and
that is the hearing on imposing the 2% Real Estate Transfer Tax. John will
read this one.
COUNCILMAN ROMANELLI: "Public Notice is hereby given that there has
been presented to the Town Board of the Town of Southold, Suffolk
County, New York, on the 4th day of August, 1998, a Local Law entitled,
"A Local Law in Relation to Imposing a 2% Real Estate Tax for the
preservation of open space within the Town of Southold (to be known as
the "Southold Community Preservation Fund")" of the Southold Town Code.
Notice is further given that the Town Board of the Town of Southold will
hold a public hearing on the aforesaid Local Law at the Southold Town
Hall. 53095 Main Road, Southold, New York. on the 18th day of August,
1998, at 8:2~) P.M. as the time and place for a public hearing on this Local
Law, which reads as follows:
A Local Law in Relation to Imposing a 2% Real Estate Transfer Tax
A Local Law imposing a two percent (2%) real estate transfer
tax on the conveyance of interests in real property in the Town of
Southold, including the incorporated villages therein, with the
revenues derived from this tax to be deposited in the Southold
Community Preservation Fund for the purpose of preserving open
space and historic places within the Town.
pg 2 - PH
BE IT ENACTED by the Town Board of the Town of Southold as
follows:
The Southold Town Code is hereby amended to add a new Article
to Chapter 6, to be Article IV, 2% Real 'Estate Transfer Tax,
Article IV to read as follows:
ARTICLE IV
2% Real Estate Transfer Tax
6-66 through 6-69 (reserved)
6-70 ?~GISLATIVE FINDINGS:
The Town of Southold enjoys a worldwide reputation as a
community of great scenic beauty, rich in natural resources and
open spaces, including agricultural lands, woodlands, wetlands,
waterways, dunes, bluffs, and other natural features. The Town
also possesses a rich historic heritage as one of the oldest
colonial settlements in the State of New York and, indeed, in the
nation. Finally, because the second home industry and tourism are
such important components of the local economy, the Town must
preserve its scenic beauty and provide recreational areas in order
to continue to attract visitors.
The Town's natural and historic resources collectively provide
the people of Southold with an unequaled community character. In
fact, the Nature Conservancy has included the region which includes
Southold Town as one of its twelve "Last Great Places" in the
Western Hemisphere. The Town has done much to foster, protect, and
promote its community character. $outhold enjoys a reputation as
being creative and innovative in the area of land use and land
conse£vation.
The Town is today under extreme development pressure, with
development out-pacing current conserVation efforts. If
exceptional action is not taken, Southold's unique character may be
irretrievably lost and the substantial investment of the Town's
citizens in protecting that character made moot. New financial
resources are imperative if the Town is to preserve its special
identity.
Pursuant to § 64-e of the New York Tow~ Law and Article 31-D
of the Tax Law, Southold Town is authorized to create and establish
a Community Preservation Fund, and to impose a two percent (2%)
real estate transfer tax, with the revenue derived from said tax to
be deposited into the $outhold Community Preservation Fund. The
creation of the fund and the imposition of the tax are subject to
mandatory referendum. It is the purpose of this Local Law to
impose the 2% real estate transfer tax in order to place the
revenue derived from the tax in said dedicated fund.
The Town Board finds that this Local
opportunity for achieving balance between
conse~v-ation which is needed to ensure the
character.
~ 6-71 through 6-74 (reserved)
Law an excellent
development and
Town's community
6-75 Definitions.
As used in this chapter, unless otherwise expressly stated,
the following words and terms shall have the following meanings:
CONSIDERATION - shall mean the price actually paid or required
to be paid for the real property or interest therein,
including payment for an option or contract to purchase real
property, whether or not expressed in the deed and whether
paid or required to be paid by money, property, or any other
thing of value. It shall include the cancellation or
discharge of an indebtedness or obligation. It shall also
include the amount of any mortgage, purchase money mortgage,
lien, or other encumbrance, whether or not the underlying
indebtedness is assumed or taken subject to.
(i)
In the case of the creation of a leasehold interest or
the granting of an option with use and occupancy of real
property, consideration shall include, but not be
limited to, the value of the rental and other payments
attributable to the use and occupancy of the real
property or interest therein, the value of any ~mount
paid for an option to purchase or renew, and the value
of rental or other payments attributable to the exercise
of any option to renew.
(2)
In the case of the creation of a subleasehold interest,
consideration shall include, but not be limited to, the
value of the sublease rental payments attributable 'to
the use and occupancy of the real property, the value of
any amount paid for an option to renew, and the value of
rental or other payments attributable to the exercise of
any option to renew, less the value of the remaining
prime lease rental payments required to be made.
pg ~t - PH
(3)
In the case of a controlling interest in any entity that
owns real property, consideration shall mean the fair
market value of the real property or interest therein,
apportioned based on the percentage of the ownership
interest transferred or acquired in the entity.
(4)
In the case of an assignment or surrender of a leasehold
interest or the assignment or surrender of an option or
contract to purchase real property, consideration shall
not include the value of the remaining rental payments
required to be made Pursuant to the reims of such lease.
or the ~mo%lr~t to be paid for the real property pursuant:
to the te~ms of the option or contract being assigned
surrendered.
(5)
In the case of (i.) the original conveyance of shares of
stock in a cooperative housing corporation in connection
wl~h the grant or transfer of a proprietary leasehold by
the cooperative corporation or cooperative plan sponsor
and (ii.) the subsequent conveyance by the owner thereof
of such stock in a cooperative housing corporation in
connection with the grant or transfer of a proprietary
leasehold for a cooperative unit other than an
individual residential unit, consideration shall include
a proportionate share of the unpaid principal of any
mortgage on the real property of the cooperative housing
corporation comprising the cooperative dwelling or
dwellimgs. Such share shall be determined by
multiPlYing the total unpaid principal of the mortgage
by a f=action, the numerator of which shall be the
number of shares of stock being conveyed in the
cooperative housing corporation in connection with the
grant or transfer of a proprietary leasehold and the
denominator of which shall be the total number of shares
of stock in the cooperative housing corporation.
CONTROLLING INTEREST - shall mean (i.) in the case of a
corporation, either fifty percent (50%) or more of the total
combined voting power of all classes of stock of such
corporation, or fifty percent (50%) or more of the capital,
profits, or beneficial interest in such voting stock of such
corporation, and (ii.) in the cas~ of a partnership,
association, trust, or other entity, fifty percent (50%) or
more Of the capital, profits, or beneficial interest in such
partnership, association, trust or other entity.
pg 5 - PH
CONVEYANCE - shall mean the transfer or transfers of any
interest in real property by any method including but not
limited to sale, exchange, assignment, surrender, mortgage
foreclosure, transfer in lieu of foreclosure, option, trust
indenture, taking by eminent domain, conveyance upon
liquidation or by a receiver, or transfer or acquisition of a
controlling interest in any entity with an interest in real
property. Transfer of an interest in real property shall
include the creation of a leasehold or sublease only where
(i.) the sum of the term of the lease or sublease and any
options for renewal exceeds forty-nine (49) years, (ii.)
Substantial capital improvements are or may be made by or for.
the benefit of the lessee or sublessee, and (iii.) the lease..
or sublease is for substantially all of the premises
constituting the real property. Notwithstanding the
foregoing, conveyance of real property shall not include a
conveyance made pursuant to devise, bequest or inheritance;
the ~iOn, modification, extension, spreading, severance,
assignment, transfer, release or satislfaCtion
of a ~ a mortgage subordination agreement, a mortgage
agreement, or an instrument given to perfect or
correct a recorded mortgage; or a release of lien of tax
pursuant to this chapter or the Internal Revenue Code.
FUND - shall mean the Southold Community Preservation Fund
created and established by Article I of this Chapter pursuant
to § 64-e of the New York Town Law.
GRANTEE - shall mean the person who obtains real property or
an interest therein as a result of a conveyance.
GRANTOR - shall mean the person making the conveyance of real
property or interest therein. Where the conveyance consists
of a transfer or an acquisition of a controlling interest in
an entity with an interest in real property, "grantor" shall
mean the entity with an interest in real property or a
shareholder or partner transferring stock or partnership
interest, respectively.
INTEREST IN REAL PROPERTY - shall include title in fee, a
leasehold interest, a beneficial interest, an encumbrance,
development rights, air space and air rights, or any other
interest with the right to use or occupancy of real property
or the right to receive rents, profits or other income derived
from real property. It shall also include an option or
contract to purchase real property. It shall not include a
right of first refusal to purchase real property.
pg 6 - PH
PERSON - shall mean an individual, partnership, limited
liability company, society, association, joint stock company,
corporation, estate, receiver, trustee, a~signee, referee, or
any other person acting in a fiduciary or representative
capacity, whether appointed by a court or otherwise, any
combination of individuals, and any other form of
unincorporated 9nterprise owned or conducted by two (2) or
more persons.
REAL PROPERTY - shall mean every estate or right, legal or
equitable, present or future, vested or contingent, in lands,
tenements or hereditaments, including buildings, structures
and other ~mprovements thereon, which are located in whole or.
in part within the Town. It shall not include rights to
sepulture.
RECORDING OFFICER - shall mean the County Clerk of the County
of Suffolk.
TOWN - shall mean the Town of Southold.
TOWN SUPERVISOR
of Southold.
shall mean the Town Supervisor of the Town
TREASURER.(COUNTY TREASURER) - shall mean the treasurer of the
County of Suffolk.
6-76 through 6-79 (Reserved.)
6-80 Imposition of real estate transfer tax.
There is hereby imposed in the Town of Southotd a tax on each
conveyance of real property or interest therein where the
consideration exceeds five hundred dollars ($500.00), the rate of
such tax to be two percent (2%) of the consideration for such
conveyance. Revenues from such tax shall be deposited in the
Southold Community Preservation Fund established by Article I of
this chapter and may be used solely for the purposes of said fund.
Such tax shall apply to any conveyance occurring on or after March
1, 1999, but shall not apply to conveyances made on or after such
date pursuant to binding written contracts entered into prior to
such date, provided that .the date of execution of such contract is
confirmed by independent evidence such as the recording of the
contract, payment of a deposit, or other fact~ and circumstances as
determined by the County Treasurer.
6-81 through 6-84. (Reserved.)
pg 7 - PH ~.~ .... ~
~ 6-85. Payment of
A. The real estate transfer tax imposed pursuant to this
article shall be paid to the Treasurer, or to the
Recording Officer acting as the agent of the Treasurer
upon designation as such agent by the Treasurer. Such
tax shall be paid at the same time as the real estate
transfer tax imposed by Article 31 of the New York Tax
Law is required to be paid. Such Treasurer or Recording
Officer shall endorse upon each deed or instrument
effecting a conveyance a receipt for the amount of the
tax so paid.
B. A return shall be required to be filed with such~i
Treasurer or Recording Officer for purposes of the real ¥ -
estate transfer tax imposed pursuant to this article at
the same time as a return is required to be filed for
purposes of the real estate transfer tax imposed by
Article 31 of the Tax Law. The Treasurer shall
prescribe the form of return, the information that it
shall contain, and the documentation that shall
accompany the return. Said form shall be identical to
the real estate transfer tax return required to be filed
pursuant to § 1409 of the Tax Law, except that the
Treasurer shall adapt said form to reflect the
provisions of this Article which are inconsistent with,
different from, or in addition to the provisions of
ArtiCle 31 of the Tax Law. The real estate transfer tax
returns required to be filed pursuant to this section
are required to be preserved for three (3) years and
thereafter until such Treasurer or Recording Officer
orders them to be destroyed.
The ~ecording Officer shall not record an instrument
effecting a conveyance unless the return required by
this section has been filed and unless the tax ~mposed
pursuant to this article shall have been paid as
provided in this section.
6-86 through 6-89. (Reserved.)
pg 8 - PH '-.'
6-90. L~ _~h_ ility for
no
The real estate transfer tax required hereunder shall be
paid by the grantee. If the grantee has failed to pay
the tax imposed pursuant to this article, or if the
grantee is exempt from such-tax, the grantor shall have
the duty to pay the tax. Where the grantor has the duty
to pay the tax because the grantee has failed to pay the
tax, such tax shall be the joint and several liability
of the grantee and grantor.
Be
For the purpose of the proper administration of this
article and to prevent evasion of the tax hereby
imposed, it shall be pres,3med that all conveyances are
taxable. Where the consideration includes property
other than money, it shall be presumed that the
consideration is the fair market value of the real
property or interest therein. These presumptions shall
prevail until the contrary is proven, and the burden of.
proving the contrary shall be on the person liable for
payment of the tax.
6-91 through 6-94. (Reserved.)
6-95.
A.
Exemptions from e~.
The following shall be exempt from payment of the real
estate transfer tax imposed by this article:
(1)
The State of New York or any of its agencies,
instrumentalities, political subdivisions, or
public corporations (including a public corporation
created pursuant to agreement, or compact with
another state or the Dominion of Canada);
(2) The United Nations; The United States of America
and any of its agencies or instrumentalities.
Be
Exemption for certain conveyances. The real estate
transfer tax imposed by this article shall not apply to
any of the following conveyances:
(1)
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).
pg 9 - PH
(2) Conveyances which are or were used to secure a debt
or other obligation.
(3) Conveyances which, without
consideration, confirm, correct,
supplement a deed previously recorded.
additional
modify, or
(4) Conveyances of real property without consideration
and otherwise than in connection with a sale,
including deeds conveying realty as bona fide
gifts.
(5) Conveyances given in connection with a tax sale.
(6) 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.
(7) Conveyances which consist of a deed of partition.
(8) Conveyances given
Bankruptcy Act.
pursuant to the Federal
(9)
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.
(10) Conveyances of real property, where the entire
parcel of real property to be conveyed is the
subject of one (1) or more of the following
development restrictions:
(a) An agricultural, conservation, scenic, or an
open .space easement;
(b) Recorded covenants or restrictions prohibiting
development;
(c)
(d)
A purchase of development rights agreement.
A transfer of development rights agreement,
where the property being conveyed has had its
development rights removed.
pg 10 - PH
(e)
(f)
said real property is subject to the
development restriction of an agricultural
district or individual commitment, pursuant to
Article 25-AA of the New York Agriculture and
Markets Law.
real property subject to any locally adopted
land preservation agreement including
agreements under the Town of Southold's Open
Space Preservation and AgricuItural Lands
Preservation Laws and, provided said exemption
is included in the local law imposing the tax
authorized by this article;
(11) Conveyances of real property, where the property isf
viable agricultural land as defined in subdivision
(7) of ~ 301 of the Agriculture and Markets Law and
the entire property to be' conveyed is to be made
subject to one of the development restrictions set
forth in the preceding paragraph 6-95 (B) (10),
provided that saidl development restrictions
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 conveyed to the Town
simultaneously with the conveyance of the real
property; or
12.
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.
6-96 through 6-99. (Reserved'.)
6-100. Additional exemptions.
A. There shall be allowed an exemption of one hundred fifty
thousand dollars ($150,000.00) on the consideration of the.
conveyance of improved real property or an interest therein.
B. There shall be allowed an exemption of seventy-five
thousand dollars ($75,000.00) on the consideration of the
conveyance of unimproved real property or an interest therein.
6-101 through 6-104. (Reserved.)
pg 11 - PH ,
.. f; 6-~L05. Cred_~ ~
A grantee shall be allowed a credit against the tax due on a
conveyance of real property to the extent that tax was paid by such
grantee on a prior creation of a leasehold of all or a portion of
the same rea% .property or on the granting of an option or contract
to purchase all or a portion of the s~me real property by such
grantee. Such Credit shallbe computed by multiplying the tax paid
on the creation of the leasehold or on the granting of the option
or contract by a fraction, the numerator of which is the value of
the consideration used to compute such tax paid which is not yet
due to such grantor on the date of the subsequent conveyance (and.,.
which such grant~r will not be entitled toreceive after such date)':'
and the denominator of which is the total value of theV
consideration used to compute such tax paid.
6-106 through 6-109. (Reserved.)
6-110.
A.
Cooperative housing corporation transfers.
Notwithstanding the definition of "controlling interest"
contained in ~ 6-75 hereof or anything to the contrary
found in the definition of "conveyance" contained in
said section, the tax imposed pursuant to this article
shall apply to the following:
(1)
The original conveyance of shares of stock in a
cooperative housing corporation in connection with
the grant or transfer of a proprietary leasehold by
the cooperative corporation or cooperative plan
sponsor.
(2)
The subsequent conveyance of such stock in a
cooperative housing corporation in connection with
the grant or transfer of a proprietary leasehold by
the owner thereof. With respect to any such
subsequent conveyance where the property is an
individual residential unit, the consideration for
the interest conveyed shall exclude the value of
any liens on certificates of stock or other
evidences of an ownership interest in and a
proprietary lease from a corporation or partnership
formed for the purpose of cooperative ownership of
residential interest in real estate remaining
thereon at the time of conveyance.. In determining
the tax on a conveyance described in paragraph A
(1) above, a credit shall be allowed for a
proportionate part of the amount of any tax paid
upon the conveyance to the cooperative housing
· <
pg 12 - PH
corporation of the real property comprising the
cooperative dwelling or dwellings to the extent
that such conveyance effectuated a mere change of
identity or form of ownership of such property and
not a change in the beneficial ownership of such
property. The amount of credit shall be detezmined
by multiplying the amount of tax pa~d upon the
conveyance to the cooperative housing corporation
by a percentage representing the extent to which
such conveyance effeCtuated a mere change of.
identity or form of ownership and not a change in'
the beneficial ownership of such property, and then~
muitiplying' the resulting product by a fraction,
the numerator of whiCh shall be the number of
shares of stock conveyed in a transaction described
in paragraph A (1) and the denominator of which
shall be the total number of shares of stock of the
~operative housing corporation (including any
stock held by the corporation). In no evenE,
however, shall such credit reduce the tax on a
conveyance described in paragraph A (1) below zero,
nor shall any such credit be allowed for a tax paid
more than twenty-four (24) months prior to the date
on which occurs the first in a series of
conveyances of shares of stock in an offering of
cooperative housing corporation shares described in
paragraph A (1).
Every cooperative housing corporation shall be
required to file an information return with the
County Treasurer by July 15th of each year covering
the preceding period of January 1 through June 30
and by January 15th of each year covering the
preceding period of July 1 through December 31.
The return shall contain such information regarding
the conveyance of shares of stock in the
cooperative housing corporation as the Treasurer
may deem necessary, including, but not limited to,
the names, addresses, and employee identification
numbers or social security numbers of the grantor
and the grantee, the number of shares conveyed, the
date of the conveyance, and the consideration paid
for such conveyance.
6-111 through 6-114. (Reserved.)
6-115. Designation of agent by ~ounty Treasurer.
The County Treasurer is authorized by law to designate the
Recording Officer to act as his or her agent for the purpose of
collecting the tax imposed by this article. The Treasurer shall
provide for the manner in which such person may be designated as
his or her agent subject to such terms and conditions as the
treasurer shall prescribe. The real estate transfer tax shall be
paid to such agent as provided in § 6-85 hereof.
6-116 through 6-119. (Reserved.)
6-120. T.~abilit~ of Recording Officer.
A Recording Officer shall not be liable for any inaccuracy in
the amount of tax imposed pursuant to this article that he or she
shall collect so long as he or she shall compute and collect such
tax on the amount of consideration or the value of the interest
conveyed as such amounts are provided to him or her by the person
paying the tax.
6-121 through 6-124. (Reserved.)
6-125. Refunds.
Whenever the Treasurer shall determine that any moneys
received under the provisions of this article were paid in error,
he or she may cause such moneys to be refunded pursuant to such
rules and regulations as he or she may prescribe, provided that any
application for such refund is filed with the Treasurer within two
(2) years from the date the erroneous payment was made.
6-126 through 6-129. (Reserved.)
6-130. Deposit and disposition of revenue.
ao
~tll taxes, penalties, and interest i~mposed by the Town
under the authority of this article, which are collected
by the Treasurer or his or her agents, shall be
deposited in a single trust fund for the Town and shall
be kept in trust and separate and apart from all other
monies in possession of the Treasurer. Moneys in such
fund shall be deposited and secured in the manner
provided by § 10 of the General Municipal Law. Pending
expenditure from such fund, moneys therein may be
invested in the manner provided in § 11 of the General
Municipal Law. Any interest earned or capital gain
realized on the moneys so deposited or invested shall
accrue to and become part of such fund.
pg 1~- PH
The Treasurer shall retain such amount as he or she may
determ_~ne to be necessary for refunds with respect to
the tax imposed by the Town under the authority of this
article, out of which the Treasurer shall pay any
refunds of such taxes to those taxpayers entitled to a
refund pursuant to the provisions of this article.
The Treasurer, after reserving such funds, shall on or...
before the twelfth day of each month, pay to the Town'
Supervisor the taxes, penalties, and interest imposed bY~:'
the Town under the authority of this article, collected
by the Treasurer pursuant to this article during the
proceeding calendar month. The amount so payable shall
be certified to the Town Supervisor by the Treasurer,
who shall not be held liable for any inaccuracy in such
certification. However, any such certification may be
based on such in'formation as may be available to the
Treasurer at the time such certification must be made
under this section.
Where the amount so paid over to the Town in any such
distribution is more or less than the amount due to the
Town, the amount of the overpayment or underpayment
shall be certified to the Town Supervisor by the
Treasurer, who shall not be held liable for any
inaccuracy in such certification. The amount of the
underpayment or overpayment shall be so certified to the
Town SUPervisor as soon after the discovery of the
overpayment or underpayment as reasonably possible and
subsequent payments and distributions by the Treasurer
to such Town shall be adjusted by subtracting the amount
of any such overpayment from or by adding the amount of
any such underpayment :to such number of subsequent
payments and distributions as the Treasurer and Town
Supervisor shall consider reasonable in view of the
underpayment or overpayment and all other facts and
circumstances.
A~i monies received from the Treasurer by the Town
Supervisor shall be deposited in the Southold Community
Preservation Fund established pursuant to ~trticle I of
this chapter and Town Law ~ 64-e.
6-131 through 6-134. (Reserved.)
pg 15 - PH
6-135.
A.
Judicial review.
Any final determination of the amount of any tax payable
under this article shall be reviewable for error,
illegality, or unconstitutionality, or any other reason
whatsoever, by a proceeding under Article 78 of the
Civil Practice Law and Rules if application therefor is
made to the Supreme Court within four (4) months after
the giving of the notice of such final determination;
provided, however, that any such proceeding under~.
Arti'cle 78 of the Civil Practice Law and Rules shall not~-
be instituted unless:
(1)
The amount of any tax sought to be reviewed, with
such interest and penalties thereon as may be
provided for by this local law, shall be first
deposited and there is filed an undertaking, issued
by a surety company authorized to transact business
in New York State and approved by the State
Superintendent of Insurance as to solvency and
responsibility, in such amount as a Justice of the
Supreme Court shall approve, to the effect that, if
such proceeding shall be dismissed or the tax
confirmed, the peti~tioner will pay all costs and
charges which may accrue in the prosecution of such
proceeding; or
(2)
At the option of the petitioner, such undertaking
may be in a sum sufficient to cover the taxes,
interest, and penalties stated in such
determination, plus the costs and charges ~hich may
accrue against the petitioner in the prosecution of
the proceeding, in which event the petitioner shall
not be required to pay such taxes, interest, or
penalties as a condition precedent to the
application.
Where any tax imposed hereunder shall have been
erroneously, illegally, or unconstitutionally assessed
or collected, and application for the refund or revision
thereof duly made to the Treasurer, and such Treasurer
shall have made a determination denying such refund or
revision, such determination shall be reviewable by a
proceeding under Article 78 of the Civil Practice Law
and Rules; provided, however, that:
pg 16 - PH
(1)
Such proceeding is instituted within four (4)
months after the giving of the notice of Such
denial;
(2) A final determination of tax due was not previously
made; and
(3)
An undertaking-is filed with the Treasurer in such
amount and with such sureties as a Justice of the
Supreme Court shall approve, to the effect that if
such proceeding is dismissed or the tax confirmed,.
the petitioner will pay all costs and charges which?
may accrue in the prosecution of such proceeding. ~
§S 6-136 through 6-139. (Reserved.)
~ 6-140. Apportionment of consideration
property located only partly within Town.
A.
subject to tax for
Where real property is situated partly within and partly
without the boundaries of the Town, the consideration
subject to tax is such part of the total consideration
as is attributable to the portion of such real property
situated with the Town or to the interest in such
portion. If the consideration attributable to the
property located in the Town is set forth in the
contract, such amount may be used to compute the tax
due.
If the 'contract does not set forth the amount of
consideration attributable to the portion of real
property .or interest therein situated within the Town,
the consideration shall be reasonably allocated between
the portion of such property or interest therein
situated within the Town and the portion of such
property or interest therein situated without the Town.
If the grantor and the grantee enter into a written
agreement, signed by both the grantor and the grantee,
which sets forth a reasonable allocation of
consideration, that allocation of' consideration may be
used to compute the tax due. If the grantor and ithe
grantee do not enter into such an agreement, or if the
allocation of consideration set forth in such agreement
is deemed unreasonable by the Treasurer, the allocation
of consideration must be computed by multiplying the
amount of consideration by a fraction, the numerator of
which is the' fair market value of the real property Or
interest therein situated within the Town, and the
denominator of which is the total fair market value of
pg 17 - PH
all the real property or interest therein being
conveyed~ Except in the case of a transfer or
acquisition of a controlling interest where
consideration means fair market value of the real
property or interest therein, the tax shall be computed
on the allocated portion of the actual consideration
paid, even if that amount is greater or less than the
fair market value as determined by appraisal. ~?~
Where the methods provided under this section do not
allocate the consideration in a fair and equitable
manner, the Treasurer may require the grantor and
grantee to allocate the consideration under such method
as he prescribes, so long as the prescribed method
results in a fair and equitable allocation.
6-141 through 6-144. (Reserved.)
6-145. Dete~%(.~nation of tax; petition to Town Supervisor.
If a return required by this article is not filed, or if
a return when filed is incorrect or insufficient, the
amount of tax due shall be determined by the Treasurer
from such records or information as may be obtainable,
including the assessed valuation of the real property or
interest therein and other appropriate factors. Notice
of such determination shall be given to the person
liable for the payment of the tax. Such determination
shall finally and irrevocably fix the tax unless the
person against whom it is assessed, within ninety (90)
days after the giving of notice of such determination,
shall petition the Town Board for a hearing, or. unless
the Treasurer, on the Treasurer's own motion, shall
redete~t~ne the same. The Tow~ Board may designate, in
writing, a hearing officer to hear such an appeal, which
hearing officer shall file a written report and
recommendation with the Town Board. In any case before
the Town Board under this article, the burden of proof
shall be on the petitioner. After such hearing, the
Town Board shall give notice of the determination to the
person against whom the tax is assessed and to the
Treasurer. Such determination may be reviewed in
accordance .with the provisions of ~ 6-135 of this
article. A proceeding for judicial review shall not be
instituted unless:
pg 18 - PH
(1)
The amount of any tax sought to be reviewed,
with penalties and interest thereon, if any,
shall be first deposited with the Treasurer
and there shall be filed with the Treasurer an
undertaking, issued by a surety company
authorized to transact business in New York
State and approved by the State Superintendent
of Insurance as to solvency and
responsibility, in such amount and wi:th such:
sureties as a Justice of the SUpreme Court:.
shall .approve, to the effect that if such
proceeding shall be dismissed or the tax
confirmed, the petitioner will pay all costs
and charges which may accrue in the
prosecution of the proceeding; or
(2)
At the option of the petitioner, such
undertaking filed with the Treasurer may be in
a sum sufficient to cover the taxes,
penalties, and interest thereon stated in such
decision, plus the costs and charges which may
accrue against him in the prosecution of the
proceeding; in which event, the petitioner
shall not be required to deposit such taxes,
penalties, and interest as a condition
precedent to the commencement of the
proceeding.
A person liable for the tax imposed by this article
(whether or not a determination assessing a tax pursuant
to subsection A hereof has been made) shall be entitled
to have the tax due finally and irrevocably fixed prior
to the ninety (90) day period referred to in subsection
A by filing with the Treasurer a signed statement
consenting thereto, in writing and in such form as the
Treasurer shall prescribe.
The remedies provided by this section and ~ 6-125, 6-
130 and 6-135 of this article shall be the exclusive
remedies available to any person for the review of tax
liability imposed by this article.
6-146 through 6-149. (Reserved.)
pg 19 - PH
§ 6-150. Procccdings to reoover tax due.
Whenever any person s~all fail to pay any tax, penalty,
or interest imposed by this article, the Town Attorney
shall, upon. the request of the Treasurer, bring or cause
to be brought, an action to enforce the payment of the
same on behalf of the Town, in any court of the State of
New York or of any other state or of the United States.
As an additional and alternative remedy, the Treasurer%.
may issue a warrant, directed to the Sheriff of Suffolk%'
County, commanding him to levy upon and sell any real
and personal property of a grantor or grantee liable for
the tax which may be found within the County, for
payment of the amount thereof, with any penalty and
interest and the cost of executing the warrant, and to
return such warrant to the Treasurer the money collected
by virtue thereof within sixty (60) days after the
receipt of the warrant. The Sheriff shall, within five
(5) days after the receipt of the warrant, file with the
Clerk a copy thereof, and thereupon such Clerk shall
enter into the judgment docket the name of the person
mentioned into the warrant and the amount of the tax,
penalty, and interest for which the warrant is issued.
Such lien shall not apply to personal property unless
such warrant is filed with the Department of State. The
Sheriff shall then proceed upon the warrant in the same
manner ~nd with like effect as that provided by law in
respect to executions issued against property upon
judgments of a court of record, and for services in
executing the warrant he shall be entitled to the same
fees, which he may collect in the same manner. In the
discretion of the Treasurer, a warrant of like terms,
force, and effect may be issued and directed to any
officer or employee of the county; and in the execdtion
thereof, such officer or employee shall have all the
powers conferred by law upon Sheriffs, but shall be
entitled to no fee or compensation in excess of the
actual expenses paid in the performance of such duty.
Upon such filing of a copy of a warrant, the Treasurer
shall have the same remedies to enforce the amount due
thereunder as if the County of Suffolk had recovered the
judgment therefor.
6-151 through 6-154. (Reserved.)
pg 20 - PH
6-155. Interest and civil penalties.
ae
Any grantor or grantee failing to file a return or to
pay any tax within the time required by this article
shall be subject to a penalty of ten percent (10%) of
the amount of the tax due plus an interest penalty of
two percent (2%) of such amount, for each month of delay
or fraction thereof after the expiration of the first
month after such return was required to be filed or such
tax became due; such interest penalty shall not exceed
twenty-five percent (25%) in the aggregate. If the-
Treasurer determines that such failure or delay was due
to reas(~nable cause and not due to willful neglect, the:-"
Treasurer shall remit, abate, or waive all of such
penalty and interest penalty.
Be
If any amount of tax is not paid on or before the last
date prescribed in ~ 6-85 hereof for payment, interest
on such amount at the rate of ten percent (10%) per
month shall be paid for the period from such last date
to the date paid.
Co
The penalties and interest provided for in this section
shall be paid to the Treasurer and shall be determined,
assessed, collected, and distributed in the same manner
as the tax imposed by this article and any reference to
tax in this article shall be deemed to include the
penalties and interest imposed in this section.
6-156 through 6-159. (Reserved.)
6-160. Confidentiality of transfer tax returns.
Except in accordance with proper judicial order or as
otherwise provided by law, it shall be unlawful for any
officer or employee of the County or Town, or any
person engaged or retained on an independent contract
basis, to divulge or make known in any manner the
particulars set forth or disclosed in any return
required under this article. However, nothing in this
section shall prohibit the Reqording Officer from making
a notation on an instrument effecting a conveyance
indicating the amount of tax paid. No recorded
instrument effecting a conveyance shall be considered a
return for the purposes of this section.
pg 21 - PH
The officers charged with the custody of such returns
shall not be required to produce any of them or evidence
of anything contained in them in any action or
proceeding in any court, except on behalf of the Town in
any action or proceeding involving the collection of a
tax due under this article to which the County or Town
or an officer or employee of the County or Town is a
party or a claimant, or on behalf of any party to any
action or proceeding under the provisions of this
article when the returns or facts shown thereby are
directly involved in such action or proceeding; in any.
of which events the court may require the production oft~
and may admit in evidence so much of said reEurns or of~
the facts shown thereby as are pertinent to the action'~
or proceeding and no more.
Nothing herein shall be construed to prohibit the
delivery to a grantor or grantee of an instrument
effecting a conveyance, or to the duly authorized
representative of such grantor or grantee, of a
certified copy of any return filed in connection with
such instrument or to prohibit the publication of
statistics so classified as to prevent the
identification of particular returns or the items
thereof or to prohibit the inspection by the legal
representatives of the County or Town of the return of
any taxpayer who shall bring action to set aside or
revieW the tax based thereon.
D. Any officer or employee of the Town who willfully
violates the provisions of this section shall be
dismissed from office and be incapable of holding any
public office in the State for a period of five (5)
years thereafter.
~§6-161 through 6-164 (reserved)
~6-165 INTERGOVERNMENTAL AGREEMENT:
The Town Board shall be authorized to, by resolution, enter
into any intergovernmental agreement necessary with the County of
Suffolk or any successor county, for the effective and efficient
administration and enforcement of this local law.
6-166 through 6-169 (reserved)
pg 22 - PH
6-170 SEVERABILI TY:
If any clause, sentence, paragraph, section, or part of this
Article shall be adjudged by any court of competent jurisdiction to
be invalid, such judgment shall not affect, impair, or invalidate
the remainder thereof, but shall be confined in its operation to
the clause, sentence, paragraph, section, or part thereof directly
involved in the controversy in which such judgment shall have been
rendered.
6-171 through 6-174 (reserved)
6-175 EFFECTIVE DATE:
This Local Law is subject to a mandatory referendum as set
forth in §1449-bb of Article 31-D of the Tax Law. This Local Law
shall take effect on March 1, 1999, after after approval at the
general election to be held on November 3, 1998 by the affirmative
vote of a majority of the qualified electors of the Town of
Southold and filing with the Secretary of State; and provided
further that the real estate transfer tax imposed by this Article
shall expire and be deemed repealed as to any conveyance taking
place after December 31, 2010.
I have an affidavit that it was posted on the Bulletin Board. Also, an
affidavit that it was published in the Traveler Watchman, and I see no
correspondence.
SUPERVISOR COCHRAN: Thank you, John. This is the last hearing in
relation to the 2% Tax. This is the part that will make it a mandatory
referendum. It sets the limits on the first $150,000. on improved property,
and $75,000 on unimproved property. The tax will commence on March 1,
1999. The one that continued, and these three others are what an earlier
resolution referred to for a special meeting we will be having on Tuesday to
pass, as a result of these hearings, these four parts of the law. Is there
anyone that would like to address the Board in relation to the referendum.
COUNCILWOMAN HUSSIE: I would like to go on record. I guess I am a
citizen right now. I certainly am in favor of doing everything and anything
that we can do to preserve land, farmland, and all other kinds of land, all
of those things that John was talking about and reading. From the very
beginning, though, I have had a problem with the 2% number, and I talked
to the Board about this. I was told at the time, that 2% was the amount,
and that was all there was to it. I checked. I thought that it should be a
1/2% on everything. I checked with the Assessors, and I was told that we
probably would take in more money on 1/2% on every sale, on all money,
pg 23 - PH
than we would on 2% on [hose properties improved $150,000, and
unapproved at $75,000, I find it interesting that the Legislature was able
to change those numbers with the towns of Southold and Riverhead. They
were able to change the threshold numbers, but they were not interested in
changing the percentage. So, I am still objecting to the percentage, and I
wanted to go on record about that.
SUPERVISOR COCHRAN: Yes. ma~am?
RONNIE WACKER: I am Ronnie Wacker, and I would like to respond to
you, Alice, on that. It seems to me that is quite fair to have a 2% tax on
properties above $150,000, because we have all over the years, since 1983
been taxing ourselves with our bond, you know, every couple of years. I
think that people coming in to buy houses should share that burden with
us. In the towns of Martha's Vineyard, Nantucket, and Block Island,
they found that it has raised property taxes, but because people are very
glad to know that they are investing in an area that will remain as nice as
it When they buy. I think that it is quite fair to have a 2% tax.
COUNCILWOMAN HUSSIE: I would like to respond to you, if I may? The
fact that when someone buys property in Southold Town the bond that we
initiated over the years are still running, and they are still being paid
off, so automatically just by buying property you become part of us, so to
speak, in paying off those bonds. I mean we did one only a couple of
years ago. It is a twenty year bond. Those people who are coming in,
whenever it is, are going to be paying those taxes also. They are not
exempt from those taxes.
SUPERVISOR COCHRAN: We are here to take input from the public this
evening. Is there anyone else that would like to address the Town Board in
relation to the 2%?
BERNARD HEINISCH: Bernard Heinisch on Route L~8. I have a question on
this. Are tax exempt organizations, churches, organizations, exempt from
this 2% tax?
STUART LOWRY: A very quick answer to that question. Government
entities are exempt from paying the tax~ when they buy property, and a
handful of conservation entities in the not-for-profit world is similarly
exempt. If they include in their charter certaln provisos that the
properties are being acquired for conservation purposes are to remain open
and wild forever, and can not be resold for any other purpose, so an
organization such as the Peconlc Land Trust, or the Nature Conservancy,
would be exempt from this tax when buying property from a property owner
willing to sell. It is hard to see that a lot of other not-for-profit would
qualify, unless they also had similar language in their charters.
SUPERVISOR COCHRAN: Thank you, Stuart.
COUNCILMAN MURPHY: The other thing that is also exempt is any
agricultural transfers, where one farmer would sell to another farmer, his
piece of land, and it would remain in farming. There will be no tax on that
transaction, either.
pg 24 - PH
BERNIE HEINISCH: Are you referring to school districts, and also, church
organizations, that are exempt from taxes.
SUPERVISOR COCHRAN: Schools are exempt from this, and churches? I
am not sure about churches. Is someone saying, yes? Ed Schwenk is
saying, yes. Are there any other questions, or other comments, that you
would llke to share during this hearing? Again, we will be meeting at 9:00
o'c[0ck, Tuesday the 25th, to take action on these four hearings.
STUART. LOII/RY; Just very quickly, I think sometimes understanding
how we came to have this particular piece of State LaW helps us understand
why it is structured the way that it is, and I, listening to Councilwoman
Hussie's comments had the same thought myself as we were going through
the exercise of creating this. in fact 'you would get more money if you had
a 1/2% tax across the board. But, there are some reasons why we elected
not to do that, and the most fundamental reason that it was not structured
in this fashion, which is in fact is the way it was structured in other
areas. It is across the board. Everyone pays on everything. They are
usually not the kinds of exemptions we have locally. It is structured this
way because the real estate industry itself, and the builders, and the
developers joined in to make this bill happen, and one of their prOvisos for
being part of this. coalition, to make sure that we got this bill from Albany
was that there be i these exemptions, and that the tax not apply to people
below certain brackets. Those brackets were set at about the medium value
for a home in each of the towns. As it happens the medium value for
homes in SOuthoid and Riverhead is about $150,000. On the south fork,
whether we like it or not, the cost of the houses are much, much higher.
The medium value is around $250,000, and that is why it was set in that
particular way. Again, this is done in order to address the direct
concerns, and the desiderata of the builders and the realtors, when you
bring everyone along in coalitions, you could have a bill that would pass in
Albany, and would we rather have done it another way in order to bring in
more money? Of course, we would all love to have seen 1/2% across the
Board. But, that was not to be. In order to sustain a coalition, in order
to get where we are, we had to each of us give up something that we might
rather have seen Tn order to get to this solution, which does seem to work.
It seems to be fair, and I pointing out to people that it is an interesting
process that has to produce two additional results. First time homeowners,
who come into our towns, or were children of us who live here, and want
to continue to live here, will not be subjected to this tax at the meeting
value of a home of $150,000 here, or $200~000, or $250,000 on the south
fork. So, there is an incentive built in to help let people who want to buy
a first home here, and live here, because it has been part of their blood,
and have been in their community for years, to stay here. The other thing
is there is no way that most people who are selling their homes, who are
retired, and find themselves caught up in any kind of negotiations in
closing, because their house value will be exempted. The other thing to
remember is that the tax begins to be applied only after you net $150,000,
so that even at $200,000 the total tax burden at closing would only be a
$1,000, so most people will be able to afford this. Most people will not be
effected by it, and in order to get to this point we had to compromise on
what the total amount of the tax would be, and how it would applied, and I
think that all of us wish we live in a perfect world r and there were such
things as perfect taxes, but I think the perfect taxes are an oxymoron.
pg 25 - PH
There is no such thing, but we are in a crisis. There is definite urgency,
and the Town Board is to be commended for recognizing and leading us in
the Town of Southold towards this project plan. towards the approval of
Community Preservation Fund, and for bringing it to the voters on
November 3rd. and I want to join everyone who spoke in congratulating
you for your vision, and your leadership in bringing us this far, I want to
let you know that the Nature Conservancy will stand by you for the next
eight weeks, to November 3rd. to bring this to passage. We will pull the
fullresources of my organization to the approval of November 3rd of this
bill, It is very important. If we don~t win 'thls one we are going see
changes that none of us want to see, and ! thank you for your support,
EDWIN SCHWENK: One further threshold, $200 per capita had to have
been put up or spent by each of the five towns in order to qualify to come
in for this legislation. Again, it is an additional threshold in order to
prevent, and I use this word common to the real estate industry, the
building industry, whatever, from failing that this would be a state-wide
cancer that would grow. Westchester County might want a landfill. Under
the conditions of $200 per capita having already been put up or spent by
each of the towns will not qualify for any other town to do this. For
instance, if that were to happen in Brookhaven Town they would have had
to spend $90,000,000 on open space trying to be able to come under this
law. So therefore, with the very thresholds that have been set forth it has
helped to protect the eastern end of Long Island to able to do this without
incurring the total wrath of the New York State Realtors industry, or the
New York Building industry, or others who feel that we are doing
something that i:s going to spread nationwide, or rather state-wide and
cause them griefS, and cause the real estate industry to die, or call the
building industry to drop dead. That is the reason for the varloqs
threshold that have been set forth, and I, again, also compliment the great
town of Southold, and your Town Board, to go ahead with this. We will do
everything that we can possibly do. I have talked about the East End
forever to aid and; abate the cause to make sure that on November 3r~d
this all passes. Thank you very much.
SUPERVISOR COCHRAN: Anyone else like to address the Town Board?
(No response.) If not. I am going to close the hearing. You are more than
welcome: to join us on Tuesday as we pass this. I am closing all four
hearings at the same time.
Elizabeth A. Neville
Southold Town Clerk
LEGAL NOTICE
~ NOTICE OF pUBLIC
HEAAIING ON LOCAL LAW
PUBLIC NOTICE IS
HEREBY.'C4VEN that there-
has been presented to the To,va
· Board of tin. Tow a OI$outhoM.
Sal~tk Couu~d. Ne,v York_ on
the 3. th da,. of .4.-a~ust Iqgg. a
Local La~, ennUed. "A Local
La~% in Ri'[atiou tO Imposing
a 2% Real E'staie Tax for the
-,preservation of open space
~ilh.ii~ the:. I0~.n'of'Sourhold
rive,d from tl~ tax to be depos-
itdd in the S6~i~hold Commffnib'
Pre.:ervation.Fmid for the put-
po~e of tl,e pre_-¢r~ation or' ag-
i'tculmra! Iaads, open spaces,
historic places, the establish-
trOD of land_, of exceptional _;ce-
nic value; tt~ preserxa6oc of
fre,h and ;alt~ater marslies or
_ okher u ed.2nes: the preser~ ation
of undeveloped beachland: or
_qwreline: the e;ca[qishtnent of
v..! Id Ii t'¢ rd(u?', for ~he ~u rpose
to beJ/pp~anas the. 7~outho d ~ ~ d x er- 7x nc
Co~.m?~LtT..~Pre~e~auo9 . proteoiouot'haDitm
Fun~ ~.o~pou~)qld fo a_ the~ecox~3:ofrxe threatened
N~TIG[. ~ F~/HER .
G~'EN 0mtn& rx,~ n Boa rd df' by'of so,it ~ota as~i ch pine
a pt~c. Ma~g;o~ the af~re-, k ofmgqttq ort~eatenedecologi-
,aid Lb~a[J_awr~[rhe'~otd cai ~e,u: [~epresefvation of
Ic,,xfi:H~H. 5~t(OY Main Road. for~qed lan~k/e pre>en'~on of
Soathol& Nex. N-ork. on.the. ~bhc~cesst*~d~ for pubhc
g_u p.u,. a~ thekme ~d~e. a ~e~a~a~ >: ~d theanden~me
for a ~lid heaffai& o~ thud Ld;' "" df ~u'.-;>i~e atbf~me~oned
c~ La(x. ~ hJchrea~ follow>. - rh*d&~lh~em'ofa ~ecnbek:
' · '~ ¢ .' - . .... able ~ ~u Office ofahe ro~xn
A Local Law m Relation to
lmposingta. 2% Real EsPgte
Trans£6r'lax
BE II 'E~A~. b3 the
~o~ B~rd' of the'Town of
.S0uthol~,a~ foUows::
a local 12,.x ~ch uould ~- .
upo~ the :~n~ ey~hce' of r~ai
clung ~ inco¢~are4 ~ dl~e ~
TA~" wkh '~ r~v~ucs d~2
COUNTY OF SUFFOLK
STATE OF NEW YORK ss:
Patricia C. LolloL being duly sworn, says that
she is the Production Coordinator, of the TRAV-
ELER WATCHMAN, a public newspaper printed
at Southold, in Suffolk County; and that the no-
tice of which the annexed is a printed copy,
has been published in said Traveler Watchman
once each week for
................................................ . .................... weeks
successively, comme,~.j.:g, on the ...../~.. .........
day ~o~..... ................ ~..~~. ,19.~..~
Sworn to before me this ........ ../....-~.... ......... ;day Of
.............. .....
Notary Public '
BARBARA k SCHNEIDER
tlOTARY ~BUC, St~t~ of New York
No. 4806fl4~
~ualified in Suffolk Cou_n~y k
Commi~ion Expir~