Warwick's Open Space transfer tax goes into effect April 1

Warwick — Home and property buyers in the Town of Warwick will begin paying a real estate transfer tax starting April 1. Residents approved the measure in November that designates .75 percent of the purchase price on most real estate transactions to go into a Community Preservation Fund, which would preserve open space by buying the development rights to farms. Buyers with signed contracts before April 1 are not subject to the tax, only those who contract from April 1 and forward. It was a New York State legislative act that allowed voters in Warwick to decide whether to impose this tax. The town, led by Supervisor Michael Sweeton, one of the creators of the plan, had lobbied Albany to give town voters home rule, allowing them to decide whether to impose the tax or not. In 2005, Albany said yes to the bill sponsored by state Sen. Thomas Morahan, R-New City, and Assemblywoman - and former town board member - Annie Rabbitt, R-C-Greenwood Lake. After an educational campaign by the supporters of this measure and an equally fierce campaign by its detractors, it was put to the voters in November. Nearly 7,000 voters cast their votes in what was considered an off-year election. By a somewhat slim margin, 237 votes, it passed. After a mandatory 60-day waiting period, the tax is being implemented April 1, the beginning of the town’s second quarter. Detractors say it is an obstacle to middle- and lower-income workers hoping to buy a house in Warwick. It adds another cost to the already high cost of closing on a house. The first $100,000 of the selling price of a home would not be subject to the tax. Neither will the first $50,000 of the price of land. The money raised through the fund, just like the $9.5 million raised through the Purchase of Development Rights referendum in 2000, will go toward preserving open space throughout the town. Warwick has preserved more than 1,200 acres of land so far with commitments from landowners for over 1,000 more. Someone buying a home for $400,000 will pay $2,250 to the Community Preservation Fund (that is .75 percent of $300,000). Sweeton has said since this was a New York State legislative act, the percentage will not change. “It is a law that amends the finance law,” said Sweeton shortly after the election. “Going back four years we said ¾ of one percent is a reasonable number. Every member of the town board still feels that way.” Last August, the town created a plan which includes properties that are eligible for preservation. None of the properties are mandated to participate. Properties listed include open space, trails, aquifer recharge areas, recreation areas, historic sites, and agricultural sites.