New YorkS 2772025-2026 Regular SessionSenateWALLET

Relates to community preservation funds for the town of Chester

Sponsored By: James Skoufis (Democratic)

Signed by Governor

LOCAL GOVERNMENTWAYS AND MEANS

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 5 benefits, 0 costs, 3 mixed.

Tax breaks for Chester property transfers

For otherwise taxable transfers, the first $100,000 is exempt for improved property, or $50,000 for unimproved property. Exempt parties include federal and state governments, their agencies and political subdivisions, and the United Nations. Transaction exemptions cover debt-security transfers, corrective deeds without added payment, gifts, tax-sale and partition deeds, bankruptcy transfers, and ownership-form changes without changed beneficial ownership. Purchase contracts and options without use or occupancy are also exempt. Qualifying transfers involving agricultural, conservation, scenic, or open-space restrictions are exempt, as are transfers to tax-exempt nonprofits for conservation or historic-preservation purposes. The farm exemption requires viable farmland, restrictions against nonfarm use for at least eight years, and an instrument delivered to Chester with the transfer. A separate local land-preservation-agreement exemption must be included in Chester's tax law. Buyers also get a credit for tax previously paid on a lease, option, or purchase contract for the same property. That credit covers only previously taxed value no longer due to the seller after the later transfer.

Chester can tax local property transfers

The law lets Chester adopt a property transfer tax up to 0.75%, after creating a preservation fund and getting voter approval. The tax starts on a town-chosen first day of a month, at least 60 days after the local law's enactment. Transfers under earlier binding written contracts are excluded when independent evidence confirms the contract date. Buyers pay; sellers must pay when buyers fail to pay or are exempt, and both can be held fully responsible. Transfers are presumed taxable, and noncash payments are valued at fair market value unless the responsible taxpayer proves otherwise. Chester must set a tax-sharing method for property crossing its boundary. The tax and return follow state transfer-tax deadlines; recording requires the return and payment.

Chester cooperative buyers face transfer tax

Chester's authorized transfer tax covers initial and later cooperative-housing share transfers tied to an apartment lease. For later individual-unit transfers, the taxed price excludes liens remaining on the ownership shares. A proportional credit covers qualifying prior tax on the cooperative property, including ownership-form changes without changed beneficial ownership. The prior tax must fall within 24 months before the offering's first share transfer; credits cannot reduce tax below zero. Cooperative corporations must report transfer details twice yearly, by July 15 and January 15, for the prior half-year.

Chester gets a dedicated preservation fund

Chester can create a preservation fund using local revenues, gifts, and all net revenue from its authorized transfer tax. Money and interest stay dedicated to preservation planning, land and property rights, a development-rights bank, and land care. Management and stewardship cannot use more than 10% of the fund; money cannot move to another account. Collections stay in a separate trust, with refund reserves; remaining prior-month collections reach the town supervisor by the 12th each month. Later payments correct certified overpayments or underpayments. Once the town board finds the plan complete and money no longer needed, remaining money must reduce related debt or obligations.

Chester preservation plans put farmland first

Once Chester creates the fund, it must adopt a project plan by local law, with farmland as the top priority. Only listed projects can receive money; the plan must compare purchases, zoning tools, development rights, and preservation easements. Usually, the plan must be ready 60 days before the tax vote; a qualifying existing open-space plan counts for up to 12 months. Updates are required at least every five years, but not before three years after the original plan. Later plans adopted beyond that three-year point cannot be revised more than once every five years. Copies go to the town clerk and state environmental, agriculture, and parks agencies. An unpaid advisory board of five or seven residents reviews acquisitions; most need preservation experience, and one must be an active farmer. Local legislators cannot serve, and terms must be staggered.

Chester preserved land gains lasting safeguards

Before acquiring property rights, Chester must hold a public hearing and find the purchase is the best available preservation option. Conditional purchase agreements can come before the hearing. Preserved land must allow public use compatible with its character, but land used with farm operations carries no general public-access right. Open-space improvements are limited to passive uses; nonprofit management agreements must keep public access unless it harms preservation. Sale, lease, disposal, or non-preservation use generally requires state legislative approval and replacement land with equal environmental and market value. Replacement land must also have reasonably equivalent usefulness and location; conservation-easement changes follow state environmental law. The development-rights bank can sell rights only when source land stays permanently preserved and proceeds return to the fund.

Chester transfer officials gain liability protections

Recording officers are protected from liability for inaccurate tax amounts when they rely on the payer's stated price or property value. Referees and sheriffs handling court-ordered foreclosure sales do not owe the covered transfer-tax interest or penalties.

Chester taxpayer refunds and privacy protections

Taxpayers can request a refund for an erroneous transfer-tax payment, but must apply within two years of paying. The treasurer must determine that the payment was made in error. Town and county workers cannot disclose tax-return details except under a proper court order or another legal exception. Exceptions preserve specified uses in lawsuits and taxpayer access. Workers who willfully violate confidentiality must be dismissed and cannot hold New York public office for five years.

Sponsors & Cosponsors

Sponsor

James Skoufis
Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 175 • No: 40

House vote • 6/13/2025

Assembly floor vote

Yes: 122 • No: 14

committee vote • 6/11/2025

Rules Committee Vote

Yes: 13 • No: 7

Senate vote • 6/11/2025

FLOOR Vote

Yes: 40 • No: 19

Actions Timeline

SIGNED CHAP.464
10/16/2025Senate
DELIVERED TO GOVERNOR
10/9/2025Senate
RETURNED TO SENATE
6/13/2025House
PASSED ASSEMBLY
6/13/2025House
ORDERED TO THIRD READING RULES CAL.709
6/13/2025House
SUBSTITUTED FOR A2022A
6/13/2025House
REFERRED TO WAYS AND MEANS
6/11/2025House
DELIVERED TO ASSEMBLY
6/11/2025Senate
PASSED SENATE
6/11/2025Senate
ORDERED TO THIRD READING CAL.1793
6/11/2025Senate
COMMITTEE DISCHARGED AND COMMITTED TO RULES
6/11/2025Senate
PRINT NUMBER 277A
4/28/2025Senate
AMEND AND RECOMMIT TO LOCAL GOVERNMENT
4/28/2025Senate
REFERRED TO LOCAL GOVERNMENT
1/8/2025Senate

Bill Text

Amendment A
4/28/2025
PDF
Original
12/23/2024
PDF

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