Effective April 1, 2023, the Peconic Bay Transfer Tax was increased from 2% to 2.5% of consideration in the Towns of East Hampton, Shelter Island, Southampton and Southold (not in the Town of Riverhead) to allow for the formation of the Community Housing Fund. Additionally, "allowances" that reduce the amount of taxable consideration are being modified or, in some cases, eliminated. The new allowance limits and the increased .5% rate took effect on transactions that commence after April 1, 2023.
The allowance amounts include up to $400,000 for properties with a consideration of less than $2 million in East Hampton, Shelter Island, Southampton, as well as a flat $200,000 allowance on any transaction in Southeld. Riverhead maintains its 2% rate, along with its allowance amount of $150,000.
When disclosing with LodeStar, the Peconic Bay Transfer Tax will not appear as its own line item. The fee will be bundled together with other fees in Section E.
For example, for a property in Southampton Township in Suffolk County, New York, with a selling price of $276,00, the Peconic Bay Transfer Tax would be included in Section E as follows:
For more information, please consult the Peconic Land Trust website.