By CARL JAFFEE
The Bedford Town Board is considering the adoption of a new Community Preservation Plan to be funded by a tax on the transfer of real property in an amount up to 2% of the consideration for each transaction. The tax, which would apply initially only to home sales over $778,000, would be paid on a graduated scale by homebuyers.
The establishment of such a tax would be subject to voter approval in a referendum to be held Nov. 5. The town board has not yet passed a resolution authorizing the ballot referendum. These actions are part of a process that began in January when the board authorized the appointment of a task force by the Open Space Acquisition Advisory Committee to prepare a conservation plan and draft law for the board to consider. That committee recruited a task force of nine persons, representing a cross section of the community, according to its report.
The procedures established by the board follow the requirement of the Hudson Valley Community Preservation Act, originally enacted by New York state in 2019. The measure permits towns and cities in Westchester, Putnam and Ulster counties to establish funds for a variety of land conservation purposes, primarily to acquire interests in real property “for the preservation of community character.” Under the plan, acquisition of real property by the town for conservation purposes would be based on criteria including water and natural resource protection, parks and recreation, wetland and habitat protection, forest health, scenic vistas, agriculture and historic properties. Any acquisition of property by the fund, with money from the transfer tax, would be based on input from an advisory board appointed by the Bedford Town Board, and would be preceded by a public hearing.
Bedford would be the first municipality in Westchester to establish such a fund. Versions of the plan were presented to the town board by the task force in March and May 21. A public hearing was held June 18. The town board is scheduled to discuss the matter at its next monthly meeting Tuesday, July 16. Actions could include adopting the preservation plan proposed by the task force, establishing a fund to carry out the plan, and authorizing the transfer tax to provide the money to do so, including a ballot referendum in November to move forward with the plans.
How would the tax work?
The proposed tax provides for an exemption for the median sales price of residential real property in the town, as determined by the state. This amount is currently $778,000, according to the countywide formula utilized by state officials.
For home sales above the exemption amount, the following rates would apply: 0.5% of the consideration up to and including $1,000,000 resulting in a tax of $1,100; 1% on the amount of consideration in excess of $1,000,000 up to and including $1,250,000 resulting in a tax of $3,610; 1.5% on the amount of consideration in excess of $1,250,000 up to and including $1,500,000 resulting in a tax of $7,360; and 2% on the amount of consideration in excess of $1,500,000 so that on a sale at $2,500,000 the tax would be $27,360 and on a saleat $3,000,000 the tax would be $37,360. The amount of the exemption would be adjusted annually as the state publishes updated sales numbers regarding home sales.
Public comments
At a public hearing June 18, town residents expressed their views, both pro and con, on the establishment the of the fund and the taxes that would support it. Comments from interested parties were received through June 28. At the June 18 hearing, representatives of several conservation groups spoke out strongly in favor of the plan, stressing the need to conserve and maintain what they called “the special character of Bedford” in the face of the depletion of funds raised by the existing open space levy. Other persons at the hearing, including local real estate sales professionals, expressed concern about the impact the transfer tax would have on the value and sale of residential real property within the town. Several questioned the need for the proposed fund, citing the various other environmental protections such as zoning requirements and wetlands protections that are already in place to preserve the nature of the town. A concern expressed by some speakers and others who submitted written comments after the hearing is that if the town board votes to put this matter to the voters, this entire matter would not be adequately publicized before the November election.
The open space levy is imposed on property owners on an annual basis as a part of the town taxes, equal to 2% of the town’s general fund and highway fund. It would remain in place whether or not the newly proposed transfer tax takes effect. The levy was first enacted in 2000.
In 2017, the amount of the levy was established by town voters at 1%, increasing to 2% in incremental steps from 2018 to 2022, In recent years, monies from the open space levy have been used by the town to purchase land at Reyburn Road and the Buxton Gorge. However, although the levy is expected to generate approximately $496,000 in the current tax year, the proponents of the transfer tax believe that such monies from the levy are inadequate to meet the town’s conservation and preservation needs and goals.
As of June 30, the fund balance raised from the open space levy was $1.1 million.