New YorkA 60972025-2026 Regular SessionHouseWALLET

Relates to community preservation funds for the town of Orangetown

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 5 benefits, 1 costs, 2 mixed.

Property transfers get exclusions and exemptions

Orangetown's transfer-tax calculation excludes up to $100,000 for improved property and $50,000 for unimproved property. Qualifying gifts, deed corrections, debt-security transfers, tax sales, bankruptcy transfers, and ownership changes without changed beneficial ownership are exempt. The law also lists government, partition, development-rights, restricted-land, and preservation-nonprofit exemptions. Purchase contracts or options without occupancy or use are also exempt. The farm exemption requires viable farmland protected from nonfarm conversion for at least eight years. The town must receive the protection document when the land transfers. A locally adopted land-preservation agreement qualifies only when the local tax law includes that exemption.

Orangetown buyers face an authorized transfer tax

The law lets Orangetown adopt a property transfer tax of up to 0.75%, after creating a preservation fund. Voters must approve imposing, repealing, or bringing back the tax. Buyers pay; sellers must pay if buyers are exempt or fail to pay. After nonpayment, either party can be held responsible for the full tax. The start date must be a month's first day, at least 60 days after the local law passes. Earlier binding written contracts are excluded when independent evidence or facts accepted by the county treasurer confirm their signing date. Transfers are presumed taxable, and noncash deals are valued at fair market value unless the responsible taxpayer proves otherwise. The local law must divide the tax for properties crossing town boundaries. A deed cannot be recorded until the tax return is filed and the tax is paid.

Buyers can credit earlier transfer taxes

Buyers can claim credit for Orangetown tax already paid on a lease, purchase option, or purchase contract for the same property. The credit applies against tax on a later transfer. It covers only the share tied to previously taxed payments not yet due to the seller and not received afterward. The credit cannot reduce the tax below zero.

Transfer taxpayers get refunds and privacy

Taxpayers can apply for refunds of mistaken transfer-tax payments within two years after payment. The treasurer decides whether the payment was made in error. Tax returns remain private, with limited exceptions for court orders, legal proceedings, and recording tax paid on deeds. Officials, employees, and contractors must follow these privacy rules. Officers or employees who knowingly violate them must be dismissed and barred from public office for five years. Taxpayers seeking court review have four months after notice and must provide the required bond or other security. Referees and sheriffs conducting court-ordered foreclosure sales do not owe the specified interest or penalties; this does not exempt other parties.

Orangetown can dedicate money to preservation

Orangetown can create a separate preservation fund receiving transfer-tax revenue, gifts, other town money, and investment earnings. Money can support approved preservation projects, land purchases, development rights, and land care; management and stewardship are capped at 10%. Fund money cannot move to unrelated accounts, and the town can borrow for preservation and repay that debt from the fund. The county treasurer holds tax, penalties, and interest separately, keeps a refund reserve, and sends remaining monthly collections by the 12th. Distribution errors are corrected in later payments. Once the project plan is complete and money is no longer needed, remaining money must reduce related debt or obligations.

Residents get oversight of preservation purchases

After creating the fund, Orangetown must adopt a project plan that puts farmland first and evaluates alternatives for each parcel. Money can pay only for listed projects; the plan must be filed with the town clerk and relevant state agencies. Updates are required at least every five years, but not during the first three years after the original plan. The plan must be ready at least 60 days before the tax referendum. A consistent, already-adopted open-space plan can count for up to 12 months. An unpaid board of five or seven residents reviews proposed purchases; most must have preservation experience, and one must actively farm. Local lawmakers cannot serve. Before buying, the town must hold a public hearing and find the purchase is the best reasonable option; conditional agreements can come earlier.

Co-op transfers face tax with offsets

Orangetown's transfer tax covers original and later co-op share transfers tied to a lease giving ownership-like use of a unit. For later residential-unit transfers, remaining liens on the shares are excluded from taxable value. Original share transfers can receive a proportional credit for earlier tax paid on a transfer to the co-op corporation. That earlier transfer must change only the ownership's form, not who actually owns the property. Earlier tax must be paid within 24 months before the offering's first transfer; the credit cannot reduce tax below zero. Co-op corporations must report buyers, sellers, shares, dates, and prices twice yearly: July 15 and January 15.

Preserved land stays protected with access limits

Fund-bought land must protect natural, scenic, historic, open-space, and wildlife values while allowing compatible public use. Open-space improvements must support quiet recreation without harming ecological value or essential wildlife habitat. Land used with farm operations carries no public-use right; nonprofit managers can restrict access when the town finds resource harm. Selling, leasing, giving away, or repurposing protected property requires state legislative approval and replacement land. Replacement land must have equal environmental and market value, plus reasonably similar usefulness and location. A town development-rights bank can sell rights only while permanently protecting the underlying land and returning proceeds to the fund. Conservation easements can be changed or ended only through the state's conservation-easement rules.

Sponsors & Cosponsors

Sponsor

Aron Wieder
Democratic • House

Cosponsors

Tommy Schiavoni
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 158 • No: 45

Senate vote • 6/13/2025

FLOOR Vote

Yes: 52 • No: 7

House vote • 6/9/2025

Assembly floor vote

Yes: 106 • No: 38

Actions Timeline

SIGNED CHAP.518
11/21/2025House
DELIVERED TO GOVERNOR
11/17/2025House
RETURNED TO ASSEMBLY
6/13/2025Senate
PASSED SENATE
6/13/2025Senate
3RD READING CAL.1989
6/13/2025Senate
SUBSTITUTED FOR S6338
6/13/2025Senate
REFERRED TO RULES
6/9/2025Senate
DELIVERED TO SENATE
6/9/2025House
PASSED ASSEMBLY
6/9/2025House
ORDERED TO THIRD READING RULES CAL.506
6/9/2025House
RULES REPORT CAL.506
6/9/2025House
REPORTED
6/9/2025House
REPORTED REFERRED TO RULES
6/6/2025House
REPORTED REFERRED TO WAYS AND MEANS
5/13/2025House
REPORTED REFERRED TO CODES
4/30/2025House
REFERRED TO LOCAL GOVERNMENTS
2/26/2025House

Bill Text

Original
2/26/2025
PDF

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