New York State lawmakers passed an exemption to the Community Preservation Fund tax for first-time home buyers in Southold Town. Southold was the fourth East End town to pass such an exemption.
The Community Preservation Fund was adopted in 1998 by the towns of East Hampton, Riverhead, Shelter Island, Southampton, and Southold to establish a 2% tax on real estate transactions within their borders. In Southold Town, the buyer in a real estate transaction is required to pay the 2% CPF tax on the purchase price above the $150,000 exemption amount. The Community Preservation Fund tax funds are used by Southold Town to purchase property within the township in an effort to preserve open space and farmland.
The exemption helps low to moderate-income homebuyers (that fit the criteria listed below) purchase their first home. We are pleased to have assisted several clients in obtaining the exemption already. Please feel free to contact us if you have any questions regarding the exemption.
Criteria for exemption:
The Community Preservation Fund was adopted in 1998 by the towns of East Hampton, Riverhead, Shelter Island, Southampton, and Southold to establish a 2% tax on real estate transactions within their borders. In Southold Town, the buyer in a real estate transaction is required to pay the 2% CPF tax on the purchase price above the $150,000 exemption amount. The Community Preservation Fund tax funds are used by Southold Town to purchase property within the township in an effort to preserve open space and farmland.
The exemption helps low to moderate-income homebuyers (that fit the criteria listed below) purchase their first home. We are pleased to have assisted several clients in obtaining the exemption already. Please feel free to contact us if you have any questions regarding the exemption.
Criteria for exemption:
- All purchasers of subject property must qualify.
- Must be the buyer(s) primary residence.
- The property must be either a one or two family house, townhouse or condominium.
- The buyer(s) do not currently own, or have not owned, a primary residence at any time in the previous three years.
- Buyer(s) do not own a vacation or investment home anywhere
- The purchase price of the home is within 60% of the NYMA Low Interest Rate limit for one-family non-target homes. As of date of this publication, the limit is $367,140.
- The buyer's household income does not exceed the NYMA Low Interest Rate limit. As of date of this publication, the limit is $126,120.
RSS Feed