On January 10, 2023, the County of Suffolk issued a memo announcing that it will delay the full implementation of the recently enacted changes for the Peconic Bay Community Preservation Fund until April 1, 2023. The changes are the new allowance limits, and the increased .5% rate will both take effect on transactions that commence after April 1, 2023.

This new effective date is the only change to the Suffolk County memo dated December 27, 2022, regarding the Additional Peconic Bay Tax.  Below is a summary of the changes specified in the 12/27/22 Suffolk County memo.

Through a change in NY Tax Law 1449-BB and changes to Town code in the towns that make up the Peconic Bay Region, we will see two changes to the way the CPF tax is calculated this year.

January 1, 2023 (now implementing April 1, 2023)

For Conveyances occurring on or after January 1, 2023 the exemptions amounts have changed in two ways, as detailed in the chart below

1. The allowance or exemption for Improved properties has been increased in East Hampton, Shelter Island, Southampton, and Southold. Riverhead remains the same. The allowance or exemption for Unimproved properties remains the same in all five towns.
2. For Conveyances in East Hampton, Shelter Island, and Southampton a new exemption cap has been implemented. For these three towns, no exemption is to be applied to transfers greater than or equal to $2,000,000.

April 1, 2023

For Conveyances occurring on or after April 1, 2023 the tax rate has been increased from 2.0% to 2.5% in East Hampton, Shelter Island, Southampton, and Southold. This is the implementation of the ½ percent Community Housing Fund (CHF) adopted by local referendum in November.