Town & Country provides this guide to estimate closing costs for you, for informational purposes only. Both Buyers and Sellers should receive Estimated Closing Costs from their respective attorneys prior to closing. Purchasers using a lending institution receive a Truth in Lending Statement from the lender. These are itemized lists of expenses. Request them as early as possible so that you can best prepare for closing.
One of the buyer’s greatest expenses is the Peconic Transfer Tax. In November of 1998 voters overwhelmingly approved the Peconic Bay Region Community Preservation Fund or CPF. In 2016 East End residents voted in all 5 towns to extend the tax until 2050.
Since its inception in 1999 the Peconic Bay Region Community Preservation Fund has generated over $1.6 Billion. These funds have enabled the 5 East End Towns to preserve open space, farmland, beaches, pine barrens, water recharge areas, wetlands, and even an island. In fact, some 10,000 acres through more than 600 acquisitions have been secured. An accomplishment we can all be proud of. The money collected is managed by the respective towns. In East Hampton and Southampton, the towns have borrowed against future fund revenue. While everyone agrees the objective of preserving the rural beauty and protecting our natural resources should remain top priority, some have questioned the fairness of existing property owners voting on taxes they don’t pay – a sensitive issue. Furthermore, the levels at which the Peconic Tax begins have come under scrutiny. In 2022 CPF raised $210.6 million, which broke 2021’s record of $139.4 million.
On July 7, 2017, an exception was imposed for first time home buyers purchasing their primary residence. Eligible individuals must apply with Suffolk County. Your attorney can assist with this.
It is important to mention that there are some who confuse Peconic Land Trust with Peconic Bay Region Transfer Tax, referred to as Peconic Land Tax or CPF (Community Preservation Fund) but they are vastly different. The Peconic Land Trust is a 501 (c) (3) non profit organization established in 1983 by John v.H. Halsey and a group of East End residents with a focus on protecting Long Island’s heritage of farming. The trust does not share in the taxes collected. For more information visit PeconicLandTrust.org.