[Adopted 8-3-2023 by L.L. No. 19-2023]
This article of Chapter 112 of the East Hampton Town Code shall be known and may be cited as the "Community Housing Fund Law."
A.
This chapter is adopted for the purpose of promoting affordable community
housing programs and development within the Town of East Hampton,
in accordance with the provisions of § 64-K of the New York
Town Law, also referred to as the "Peconic Bay Region Community Housing
Act."
B.
The East Hampton Town Board finds the provision of a variety of housing
opportunities for community members across the economic spectrum to
be key to maintaining the fabric of a healthy, sustainable community,
allowing for a diverse makeup of residents along with a robust local
workforce and viable businesses.
C.
A lack of affordable housing has resulted in a housing shortage,
the impacts of which are increasingly evident, and Town participation
is needed to provide new housing options and make existing housing
accessible for moderate- and low-income working residents.
D.
East Hampton Town's unique demographics and economics contribute
to this dynamic. The area's environment and beauty, along with
its relative proximity to a major metropolitan area, make it a sought-after
locale for luxury and seasonal vacation housing.
E.
The recent pandemic exacerbated the already high demand for existing
housing as a growing number of people sought to relocate to East Hampton
from more urban areas. This demand has reduced the housing available
to year-round community members and is reflected in real estate values
across the spectrum, including those for moderately priced housing.
F.
The availability of rental housing has been further diminished by
property owners' increased use of online short-term rental agencies
to make what once may have been year-round residents' housing
available only for vacation, seasonal, or other short-term rentals,
and by the lucrative real estate market, which has prompted a number
of rental property owners to "cash out" and sell their rental properties,
eliminating them from the rental housing stock.
G.
As a result of the housing crisis and high cost of housing for local
individuals and families, longtime residents are forced to leave the
area; employers are having difficulty finding and retaining employees;
local volunteer emergency services agencies face difficulty in recruitment;
traffic has increased as many who work in East Hampton must commute
from elsewhere, and residents of the Town may be forced to live in
illegal or substandard conditions.
H.
The Town Board wishes to sustain and strengthen our community by
providing opportunities for our local workforce to both live here
and work here; for young people who have grown up in East Hampton
to remain, continue to live near their families, and become contributing
residents of their hometown; and for the people who make up our East
Hampton community to have access to safe and affordable housing.
I.
It is the purpose of this local law to implement the authority given
to the Town of East Hampton to establish a dedicated local fund to
provide a variety of needed housing opportunities as authorized by
Chapter 445 of the Laws of 2021, entitled, "An Act to amend the Town
Law and the Tax Law, in relation to authorizing towns in the Peconic
Bay region to establish community housing funds to be funded by a
supplemental real estate transfer tax."
The definitions as set forth in Article II of this chapter shall apply, except as otherwise provided herein.
The advisory board created pursuant to § 64-k(6)
of the New York State Town Law [also referred to as the Peconic Bay
Region Community Housing Act (the "Act")].
A primary residential property for an eligible individual
that does not exceed 150% of the purchase price limits established
by the State of New York Mortgage Agency low-interest-rate loan program
in non-target categories for Suffolk County in effect on the contract
date for the sale of such property.
The Comptroller of the County of Suffolk.
A household where the income of that household does not exceed
100% of the income limits as established by the State of New York
Mortgage Agency Low Interest Rate Loan Program in non-target categories
for Suffolk County in effect on the contract date for the sale of
such property.
An eligible individual who has not owned a primary residential
property and not married to a person who has owned a residential property
during the three-year period prior to that individual's purchase
of the primary residential property and who does not own or have a
current ownership interest in a vacation or investment home.
The East Hampton Community Housing Fund created and established pursuant to § 64-k of the New York Town Law and Article V of this chapter.
Any one or two-family house, townhouse, condominium.
A person who is currently a resident of the Town or a nonresident
who has been a resident of the Town within the past five years, measured
as of the time of screening of an applicant for an opportunity created
under this chapter.
The "Community Housing Fund" is established hereunder as authorized
by § 64-K of the New York Town Law "Peconic Bay region Community
Housing Fund," and deposits to the same as well as use of such funds
shall be in a manner consistent with this article and New York State
Town Law § 64-K, as the same may be amended from time to
time.
Community Housing Funds shall be utilized as provided for in
this Article and New York State Town Law § 64-K(3), (4),
and (5), as the same may be amended from time to time.
The Town Board shall have power, by resolution and after a public
hearing held on not less than five days' notice, to adopt and
implement regulations pertaining to the collection and administration
of funds for affordable housing programs, provided such regulations
are consistent with the provisions of New York State Tax Law Article
31-D, as the same may be amended from time to time.
A.
The Town Board of the Town of East Hampton hereby establishes a Community Housing Advisory Board (the "Board") to review and make recommendations regarding the Town Community Housing Fund. Such The Advisory Board shall consist of not less than seven but no more than 15 legal residents of the Town who shall serve without compensation. No member of the Town Board shall serve on the Advisory Board. Where a village has elected to participate in the Fund, as provided in § 112-5-43 of this chapter, the Advisory Board shall include at least one resident of a participating village. The Advisory Board shall act in an advisory capacity to the Town Board and shall include a representative of: (1) the construction industry, (2) the real estate industry, (c) the banking industry, and three representatives of local housing advocacy or human services organizations.
A.
Community housing implementation plan. The Town Board shall adopt
a Town Community Housing Implementation Plan ("Community Housing Plan")
for the provision of community housing opportunities by the Fund.
The Community Housing Plan must adhere to the following principles:
(1)
Public investment. To account for and minimize social, economic,
and environmental costs of new development, including infrastructure
costs, such as transportation, sewers, and wastewater treatment, water,
schools, recreation, and loss of open space and agricultural land;
(2)
Development. To encourage development in areas where transportation,
sewers, and wastewater treatment infrastructure is available or practical;
(3)
Conservation. To protect, preserve, and enhance the Town's
resources, including agricultural land, forests, surface waters, groundwater,
recreation and open space, scenic areas, and significant historic
and archeological sites;
(4)
Coordination. To promote coordination of state and local government
decisions and cooperation among communities to work toward the most
efficient, planned and cost-effective delivery of government services
by, among other means, facilitating cooperative agreements among adjacent
communities, and to coordinate planning to ensure compatibility of
community development with development of neighboring communities;
(5)
Community design. To strengthen communities through development
and redevelopment strategies that include integration of all income
and age groups, mixed land uses, and compact development, traditional
neighborhood development, planned unit development, open space districts,
downtown revitalization, brownfield redevelopment, enhanced beauty
in public spaces, and diverse and community housing in close proximity
to places of employment, recreation, and commercial development;
(6)
Transportation. To provide transportation choices, including
increasing public transit and alternative modes of transportation,
in order to reduce automobile dependency, traffic congestion, and
automobile pollution;
(7)
Consistency. To insure predictability in building and land use
codes;
(8)
Community collaboration. To provide for and encourage a collaborative
community-based effort, that includes long-term land use and permit
predictability and coordination, efficient decisionmaking and planning
implementation.
B.
Preparation of maps. The Community Housing Plan may include the establishment
of a map or maps that delineate the housing implementation recommendations
proposed by the Town.
C.
Public hearing required; plan updates. The Community Housing Plan
shall not be adopted until after a public hearing has been held by
the Town Board. The Community Housing Plan shall be updated at least
once every five years. The Community Housing Plan shall be adopted
before monies may be expended from the Fund.
D.
Community housing plan to be part of comprehensive plan. The Community
Housing Plan shall be an element of the Town Comprehensive Plan.
E.
Income and other eligibility requirements. The Community Housing
Plan shall provide for income and other eligibility requirements for
community housing, including any eligibility preference that may be
given based upon residency or other criteria. The Community Housing
Plan shall also provide for the legal mechanism that shall be employed
to maintain the housing stock created pursuant to this section at
community housing levels. The resale of community housing to the public
for occupancy created pursuant to this section to other than income
eligible households shall be prohibited.
F.
Affordability required under the Community Housing Plan. The Community
Housing Plan shall ensure that all community housing created pursuant
to this chapter remains affordable. Subsequent purchasers of such
community housing shall have at the time of purchase, pursuant to
the definition of "eligible individual," an income that does not exceed
100% of the income limits as established by the State of New York
Mortgage Agency Low-Interest-Rate Loan Program in non-target categories
for Suffolk County in effect on the contract date for the sale of
such property.
G.
Equitable distribution of affordable housing throughout the Town.
The Community Housing Plan shall provide for the equitable distribution
of community housing opportunities among all the communities or hamlets
of the Town. The Community Housing Plan shall ensure that no community
or hamlet within the Town has an undue concentration of community
housing opportunities that would substantially alter the character
of that community or the Town as a whole. In determining equitable
distribution of community housing opportunities, existing community
housing opportunities in each hamlet of the Town shall be considered.
A.
Optional participation by villages. The participation of a village
in the community housing program established by this chapter shall
be at the option of the each such village. In order to participate,
a village shall pass a resolution opting into the program and shall
submit said resolution to the Town Board.
B.
Intergovernmental agreements in case of village participation. Where
a village opts to participate pursuant to this section, an intergovernmental
agreement shall be executed pursuant to Article 5-G of the General
Municipal Law, in order to establish the rights and responsibilities
of each government regarding community housing opportunities.
C.
Supplemental real estate tax applicable within incorporated villages.
Regardless of whether a village participates in the program authorized
by this Chapter, properties in the village shall be subject to the
supplemental real estate transfer tax authorized by Subdivision 2
of § 1449bb of the Tax Law.
There is hereby imposed in the Town of East Hampton a supplemental tax on each conveyance of real property or interest therein where the consideration exceeds $500, as authorized by Article 31-D of the New York Tax Law, the rate of such tax to be 0.5% of the consideration for the conveyance. Revenues from such tax shall be deposited in the Affordable Housing Fund established pursuant to Article I of this chapter and may be used solely for the purposes of said fund. Such tax shall apply to any conveyance occurring on or after the adoption of this chapter, but shall not apply to conveyances made on or after such date pursuant to binding written contracts entered into prior to such date, provided that the date of execution of such contract is confirmed by independent evidence such as the recording of the contract, payment of a deposit or other facts and circumstances as determined by the County Comptroller.
A.
The supplemental real estate transfer tax imposed pursuant to this
article shall be paid to the Comptroller, or to the recording officer
acting as the agent of the Comptroller upon designation as such agent
by the Comptroller. Such tax shall be paid at the same time as the
real estate transfer tax imposed by Article 31 of the New York Tax
Law is required to be paid. Such Comptroller or recording officer
shall endorse upon each deed or instrument effecting a conveyance
a receipt for the amount of the tax so paid. In no event shall the
Town Tax Receiver have any responsibility to collect such funds on
behalf of the Town.
B.
A return shall be required to be filed with such Comptroller or recording
officer for purposes of the supplemental real estate transfer the
tax imposed pursuant to § 64-K of the Town Law of the State
of New York, as determined by the County Comptroller, at the same
time as a return is required to be filed for purposes of the real
estate transfer tax imposed by Article 31 of the Tax Law. The Comptroller
shall prescribe the form of return, the information that it shall
contain and the documentation that shall accompany the return. Said
form shall be identical to the real estate transfer tax return required
to be filed pursuant to § 1409 of the Tax Law, except that
the Comptroller shall adapt said form to reflect the provisions of
this article which are inconsistent with, different from or in addition
to the provisions of Article 31 of the Tax Law. The real estate transfer
tax returns required to be filed pursuant to this section are required
to be preserved for three years and thereafter until such Comptroller
or recording officer orders them to be destroyed.
C.
The recording officer shall not record an instrument effecting a
conveyance unless the return required by this section has been filed
and unless the tax imposed pursuant to this article shall have been
paid as provided in this section.
A.
The supplemental real estate transfer tax required hereunder shall
be paid by the grantee. If the grantee has failed to pay the tax imposed
pursuant to this article, or if the grantee is exempt from such tax,
the grantor shall have the duty to pay the tax. Where the grantor
has the duty to pay the tax because the grantee has failed to pay,
such tax shall be the joint and several liability of the grantee and
grantor.
B.
For the purpose of the proper administration of this article and
to prevent evasion of the tax hereby authorized, it shall be presumed
that all conveyances are taxable. Where the consideration includes
property other than money, it shall be presumed that the consideration
is the fair market value of the real property or interest therein.
These presumptions shall prevail until the contrary is proven, and
the burden of proving the contrary shall be on the person liable for
payment of the tax.
A.
Exemption for government agencies. The following entities shall be
exempt from payment of the real estate transfer tax imposed by this
article:
(1)
The State of New York or any of its agencies, instrumentalities,
political subdivisions or public corporations (including a public
corporation created pursuant to agreement or compact with another
state or the Dominion of Canada).
(2)
The United Nations.
(3)
The United States of America and any of its agencies or instrumentalities.
B.
Exemption for certain conveyances. The real estate transfer tax imposed
by this article shall not apply to any of the following conveyances:
(1)
Conveyances to the United Nations, the United States of America,
the State of New York or any of their instrumentalities, agencies
or political subdivisions (or any public corporation, including a
public corporation created pursuant to agreement or compact with another
state or the Dominion of Canada).
(2)
Conveyances which are or were used to secure a debt or other
obligation.
(3)
Conveyances which, without additional consideration, confirm,
correct, modify or supplement a prior conveyance.
(4)
Conveyances of real property without consideration and otherwise
than in connection with a sale, including conveyances conveying realty
as bona fide gifts.
(5)
Conveyances given in connection with a tax sale.
(6)
Conveyances to effectuate a mere change of identity or form
of ownership or organization where there is no change in beneficial
ownership, other than conveyances to a cooperative housing corporation
of the real property comprising the cooperative dwelling or dwellings.
(7)
Conveyances which consist of a deed of partition.
(9)
Conveyances of real property which consist of the execution
of a contract to sell real property without the use or occupancy of
such property or the granting of an option to purchase real property
without the use or occupancy of such property.
(10)
Conveyances of real property, where the entire parcel of real
property to be conveyed is the subject of one or more of the following
development restrictions:
(a)
An agricultural, conservation, scenic or other open space easement
which entirely prohibits the development of the property or which
restricts its use solely to agriculture.
(b)
Recorded covenants or restrictions which prohibit the development
of the property.
(c)
A purchase of development rights agreement.
(d)
A transfer of development rights agreement, where the property
being conveyed has had its development rights removed.
(e)
Development restrictions which result from the inclusion of
the property in an agricultural district or its subjection to an individual
commitment, pursuant to Article 25-AA of the New York Agriculture
and Markets Law.
(f)
Development restrictions which result from the subjection of the property to a local land preservation agreement, such that the development of the property is entirely prohibited or is restricted solely to agriculture, pursuant to Chapter 16 of the Town Code or corresponding provisions of a local law adopted by an incorporated village.
(11)
Conveyances of real property, where the property is viable agricultural land as defined in Subdivision 7 of § 301 of the Agriculture and Markets Law and the entire property to be conveyed is to be made subject to one of the development restrictions set forth in the preceding Subsection B(10), provided that said development restrictions are evidenced by an easement, agreement or other suitable instrument which is conveyed to the Town simultaneously with the conveyance of the real property.
(12)
Conveyances of real property for open space, parks or historic
preservation purposes to any not-for-profit tax-exempt corporation
operated for conservation, environmental or historic preservation
purposes.
A.
There shall be allowed an exemption of $400,000 on the consideration
of the conveyance of improved real property or an interest therein.
B.
There shall be allowed an exemption of $100,000 on the consideration
of the conveyance of unimproved real property or an interest therein.
C.
The exemptions provided in A and B above shall only apply to conveyances
of residential property where the consideration is $2,000,000 or less.
A grantor shall be allowed a credit against the tax due on a
conveyance of real property to the extent that tax was paid by such
grantor on a prior creation of a leasehold of all or a portion of
the same real property or on the granting of an option or contract
to purchase all or a portion of the same real property by such grantor.
Such credit shall be computed by multiplying the tax paid on the creation
of the leasehold or on the granting of the option or contract by a
fraction, the numerator of which is the value of the consideration
used to compute such tax paid which is not yet due to such grantor
on the date of the subsequent conveyance (and which such grantor will
not be entitled to receive after such date) and the denominator of
which is the total value of the consideration used to compute such
tax paid.
A.
Notwithstanding the definition of "controlling interest" contained in § 112-2-10 hereof or anything to the contrary found in the definition of "conveyance" contained in said section, the tax imposed pursuant to this article shall apply to the following:
(1)
The original conveyance of shares of stock in a cooperative
housing corporation in connection with the grant or transfer of a
proprietary leasehold by the cooperative corporation or cooperative
plan sponsor.
(2)
The subsequent conveyance of such stock in a cooperative housing corporation in connection with the grant or transfer of a proprietary leasehold by the owner thereof. With respect to any such subsequent conveyance where the property is an individual residential unit, the consideration for the interest conveyed shall exclude the value of any liens on certificates of stock or other evidence of an ownership interest in and a proprietary lease from a corporation or partnership formed for the purpose of cooperative ownership of residential interest in real estate remaining thereon at the time of conveyance. In determining the tax on a conveyance described in Subsection A(1) above, a credit shall be allowed for a proportionate part of the amount of any tax paid upon the conveyance to the cooperative housing corporation of the real property comprising the cooperative dwelling or dwellings to the extent that such conveyance effectuated a mere change of identity or form of ownership of such property and not a change in the beneficial ownership of such property. The amount of credit shall be determined by multiplying the amount of tax paid upon the conveyance to the cooperative housing corporation by a percentage representing the extent to which such conveyance effectuated a mere change of identity or form of ownership and not a change in the beneficial ownership of such property, and then multiplying the resulting product by a fraction, the numerator of which shall be the number of shares of stock conveyed in a transaction described in Subsection A(1) and the denominator of which shall be the total number of shares of stock of the corporative housing corporation (including any stock held by the corporation). In no event, however, shall such credit reduce the tax on a conveyance described in Subsection A(1) below zero, nor shall any such credit be allowed for a tax paid more than 24 months prior to the date on which occurs the first in a series of conveyances of shares of stock in an offering of cooperative housing corporation shares described in Subsection A(1).
B.
Every cooperative housing corporation shall be required to file an
information return with the County Comptroller by July 15 of each
year covering the preceding period of January 1 through June 30 and
by January 15 of each year covering the preceding period of July 1
through December 31. The return shall contain such information regarding
the conveyance of shares of stock in the cooperative housing corporation
as the Comptroller may deem necessary, including, but not limited
to, the names, addresses and employee identification numbers or social
security numbers of the grantor and the grantee, the number of shares
conveyed, the date of the conveyance and the consideration paid for
such conveyance.
The County Comptroller is authorized by law to designate the recording officer to act as his agent for the purpose of collecting the tax imposed by this article. The Comptroller shall provide for the manner in which such person may be designated as his agent subject to such terms and conditions as he shall prescribe. The real estate transfer tax shall be paid to such agent as provided in § 112-5-50 of this chapter.
A recording officer shall not be liable for any inaccuracy in
the amount of tax imposed pursuant to this article that he shall collect
so long as he shall compute and collect such tax on the amount of
consideration or the value of the interest conveyed as such amounts
are provided to him by the person paying the tax.
Whenever the Comptroller shall determine that any moneys received
under the provisions of this article were paid in error, he may cause
such money to be refunded pursuant to such rules and regulations as
he may prescribe, provided that any application for such refund is
filed with the Comptroller within two years from the date the erroneous
payment was made.
A.
All taxes, penalties and interest imposed by the Town under the authority
of this article, which are collected by the Comptroller or his agents,
shall be deposited in a single trust fund for the Town and shall be
kept in trust and separate and apart from all other moneys in possession
of the Comptroller. Moneys in such fund shall be deposited and secured
in the manner provided by § 10 of the General Municipal
Law. Pending expenditure from such fund, moneys therein may be invested
in the manner provided in § 11 of the General Municipal
Law. Any interest earned or capital gain realized on the moneys so
deposited or invested shall accrue to and become part of such fund.
B.
The Comptroller shall retain such amount as he may determine to be
necessary for refunds with respect to the tax imposed by the Town
under the authority of this article, out of which the Comptroller
shall pay any refunds of such taxes to those taxpayers entitled to
a refund pursuant to the provisions of this article.
C.
The Comptroller, after reserving such funds, shall on or before the
12th day of each month pay to the Town Supervisor the taxes, penalties
and interest imposed by the Town under the authority of this article,
collected by the Comptroller pursuant to this article during the proceeding
calendar month. The amount so payable shall be certified to the Town
Supervisor by the Comptroller, who shall not be held liable for any
inaccuracy in such certification. However, any such certification
may be based on such information as may be available to the Comptroller
at the time such certification must be made under this section.
D.
Where the amount so paid over to the Town in any such distribution
is more or less than the amount due to the Town, the amount of the
overpayment or underpayment shall be certified to the Town Supervisor
by the Comptroller, who shall not be held liable for any inaccuracy
in such certification. The amount of the underpayment or overpayment
shall be so certified to the Town Supervisor as soon after the discovery
of the overpayment or underpayment as reasonably possible, and subsequent
payments and distributions by the Comptroller to such Town shall be
adjusted by subtracting the amount of any such overpayment from or
by adding the amount of any such underpayment to such number of subsequent
payments and distributions as the Comptroller and Town Supervisor
shall consider reasonable in view of the underpayment or overpayment
and all other facts and circumstances.
A.
Any final determination of the amount of any tax payable under this
article shall be reviewable for error, illegality or unconstitutionality
or any other reason whatsoever, by a proceeding under Article 78 of
the Civil Practice Law and Rules if application therefor is made to
the Supreme Court within four months after the giving of the notice
of such final determination; provided, however, that any such proceeding
under Article 78 of the Civil Practice Law and Rules shall not be
instituted unless:
(1)
The amount of any tax sought to be reviewed, with such interest
and penalties thereon as may be provided for by this chapter, shall
be first deposited and there is filed an undertaking, issued by a
surety company authorized to transact business in New York State and
approved by the State Superintendent of Insurance as to solvency and
responsibility, in such amount as a Justice of the Supreme Court shall
approve, to the effect that if such proceeding shall be dismissed
or the tax confirmed, the petitioner will pay all costs and charges
which may accrue in the prosecution of such proceeding; or
(2)
At the option of the petitioner, such undertaking may be in
a sum sufficient to cover the taxes, interest and penalties stated
in such determination, plus the costs and charges which may accrue
against him in the prosecution of the proceeding, in which event the
petitioner shall not be required to pay such taxes, interest or penalties
as a condition precedent to the application.
B.
Where any tax imposed hereunder shall have been erroneously, illegally
or unconstitutionally assessed or collected, and application for the
refund or revision thereof duly made to the Comptroller, and such
Comptroller shall have made a determination denying such refund or
revision, such determination shall be reviewable by a proceeding under
Article 78 of the Civil Practice Law and Rules; provided, however,
that:
(1)
Such proceeding is instituted within four months after the giving
of the notice of such denial.
(2)
A final determination of tax due was not previously made.
(3)
An undertaking is filed with the Comptroller in such amount
and with such sureties as a Justice of the Supreme Court shall approve,
to the effect that if such proceeding is dismissed or the tax confirmed,
the petitioner will pay all costs and charges which may accrue in
the prosecution of such proceeding.
A.
Where real property is situated partly within and partly without
the boundaries of the Town, the consideration subject to tax is such
part of the total consideration as is attributable to the portion
of such real property situated within the Town or to the interest
in such portion. If the consideration attributable to the property
located in the Town is set forth in the contract, such amount may
be used to compute the tax due.
B.
If the contract does not set forth the amount of consideration attributable
to the portion of real property or interest therein situated within
the Town, the consideration shall be reasonably allocated between
the portion of such property or interest therein situated within the
Town and the portion of such property or interest therein situated
without the Town. If the grantor and the grantee enter into a written
agreement, signed by both the grantor and the grantee, which sets
forth a reasonable allocation of consideration, that allocation of
consideration may be used to compute the tax due. If the grantor and
the grantee do not enter into such an agreement, or if the allocation
of consideration set forth in such agreement is deemed unreasonable
by the Comptroller, the allocation of consideration must be computed
by multiplying the amount of consideration by a fraction, the numerator
of which is the fair market value of the real property or interest
therein situated within the Town and the denominator of which is the
total fair market value of all the real property or interest therein
being conveyed. Except in the case of a transfer or acquisition of
a controlling interest where consideration means fair market value
of the real property or interest therein, the tax shall be computed
on the allocated portion of the actual consideration paid, even if
that amount is greater or less than the fair market value as determined
by appraisal.
C.
Where the methods provided under this section do not allocate the
consideration in a fair and equitable manner, the Comptroller may
require the grantor and grantee to allocate the consideration under
such method as he prescribes, so long as the prescribed method results
in a fair and equitable allocation.
A.
If a return required by this article is not filed, or if a return when filed is incorrect or insufficient, the amount of tax due shall be determined by the Comptroller from such records or information as may be obtainable, including the assessed valuation of the real property or interest therein and other appropriate factors. Notice of such determination shall be given to the person liable for the payment of the tax. Such determination shall finally and irrevocably fix the tax unless the person against whom it is assessed, within 90 days after the giving of notice of such determination, shall petition the Town Supervisor for a hearing, or unless the Comptroller, on the Comptroller's own motion, shall redetermine the same. The Town Supervisor may designate, in writing, a hearing officer to hear such an appeal, which hearing officer shall file a written report and recommendation with the Town Supervisor. In any case before the Town Supervisor under this article, the burden of proof shall be on the petitioner. After such hearing, the Town Supervisor shall give notice of the determination to the person against whom the tax is assessed and to the Comptroller. Such determination may be reviewed in accordance with the provisions of § 112-5-100 of this chapter. A proceeding for judicial review shall not be instituted unless:
(1)
The amount of any tax sought to be reviewed, with penalties
and interest thereon, if any, shall be first deposited with the Comptroller
and there shall be filed with the Comptroller an undertaking, issued
by a surety company authorized to transact business in New York State
and approved by the State Superintendent of Insurance as to solvency
and responsibility, in such amount and with such sureties as a Justice
of the Supreme Court shall approve, to the effect that if such proceeding
shall be dismissed or the tax confirmed, the petitioner will pay all
costs and charges which may accrue in the prosecution of the proceeding;
or
(2)
At the option of the petitioner, such undertaking filed with
the Comptroller may be in a sum sufficient to cover the taxes, penalties
and interest thereon stated in such decision, plus the costs and charges
which may accrue against him in the prosecution of the proceeding;
in which event, the petitioner shall not be required to deposit such
taxes, penalties and interest as a condition precedent to the commencement
of the proceeding.
B.
A person liable for the tax imposed by this article (whether or not a determination assessing a tax pursuant to Subsection A hereof has been made) shall be entitled to have the tax due finally and irrevocably fixed prior to the ninety-day period referred to in Subsection A by filing with the Comptroller a signed statement consenting thereto, in writing and in such form as the Comptroller shall prescribe.
A.
Whenever any person shall fail to pay any tax, penalty or interest
imposed by this article, the Town Attorney shall, upon the request
of the Comptroller, bring or cause to be brought an action to enforce
the payment of the same on behalf of the Town, in any court of the
State of New York or of any other state or of the United States.
B.
As an additional and alternative remedy, the Comptroller may issue
a warrant, directed to the Sheriff of Suffolk County, commanding him
to levy upon and sell any real and personal property of a grantor
or grantee liable for the tax which may be found within the county,
for payment of the amount thereof, with any penalty and interest and
the cost of executing the warrant, and to return such warrant to the
Comptroller and to pay the Comptroller the money collected by virtue
thereof within 60 days after the receipt of the warrant. The Sheriff
shall, within five days after the receipt of the warrant, file with
the Clerk a copy thereof, and thereupon such Clerk shall enter in
the judgment docket the name of the person mentioned in the warrant
and the amount of the tax, penalty and interest for which the warrant
is issued. Such lien shall not apply to personal property unless such
warrant is filed with the Department of State. The Sheriff shall then
proceed upon the warrant in the same manner and with like effect as
that provided by law in respect to executions issued against property
upon judgments of a court of record, and for services in executing
the warrant he shall be entitled to the same fees, which he may collect
in the same manner. In the discretion of the Comptroller, a warrant
of like terms, force and effect may be issued and directed to any
officer or employee of the county; and in the execution thereof, such
officer or employee shall have all the powers conferred by law upon
sheriffs but shall be entitled to no fee or compensation in excess
of the actual expenses paid in the performance of such duty. Upon
such filing of a copy of a warrant, the Comptroller shall have the
same remedies to enforce the amount due thereunder as if the County
of Suffolk had recovered the judgment therefor.
A.
Any grantor or grantee failing to file a return or to pay any tax
within the time required by this article shall be subject to a penalty
of 10% of the amount of the tax due plus an interest penalty of 2%
of such amount, for each month of delay or fraction thereof after
the expiration of the first month after such return was required to
be filed or such tax became due; such interest penalty shall not exceed
25% in the aggregate. If the Comptroller determines that such failure
or delay was due to reasonable cause and not due to willful neglect,
the Comptroller shall remit, abate or waive all of such penalty and
interest penalty.
B.
If any amount of tax is not paid on or before the last date prescribed in § 112-5-50 of this chapter for payment, interest on such amount at the rate of 10% per month shall be paid for the period from such last date to the date paid.
C.
The penalties and interest provided for in this section shall be
paid to the Comptroller and shall be determined, assessed, collected
and distributed in the same manner as the tax imposed by this article,
and any reference to tax in this article shall be deemed to include
the penalties and interest imposed in this section.
A.
Except in accordance with proper judicial order or as otherwise provided
by law, it shall be unlawful for any officer or employee of the Town,
or any person engaged or retained on an independent contract basis,
to divulge or make known in any manner the particulars set forth or
disclosed in any return required under this article. However, nothing
in this section shall prohibit the recording officer from making a
notation on an instrument effecting a conveyance indicating the amount
of tax paid. No recorded instrument effecting a conveyance shall be
considered a return for the purposes of this section.
B.
The officers charged with the custody of such returns shall not be
required to produce any of them or evidence of anything contained
in them in any action or proceeding in any court, except on behalf
of the Town in any action or proceeding involving the collection of
a tax due under this article to which the Town or an officer or employee
of the Town is a party or a claimant, or on behalf of any party to
any action or proceeding under the provisions of this article when
the returns or facts shown thereby are directly involved in such action
or proceeding; in any of which events the court may require the production
of and may admit in evidence so much of said returns or of the facts
shown thereby as are pertinent to the action or proceeding and no
more.
C.
Nothing herein shall be construed to prohibit the delivery to a grantor
or grantee of an instrument effecting a conveyance, or to the duly
authorized representative of such grantor or grantee, of a certified
copy of any return filed in connection with such instrument or to
prohibit the publication of statistics so classified as to prevent
the identification of particular returns or the items thereof or to
prohibit the inspection by the legal representatives of the Town of
the return of any taxpayer who shall bring action to set aside or
review the tax based thereon.
D.
Any officer or employee of the Town who willfully violates the provisions
of this section shall be dismissed from office and be incapable of
holding any public office in the state for a period of five years
thereafter.
A mandatory referendum having been submitted to the voters of the Town of East Hampton on the eighth day of November 2022 to fund affordable housing opportunities in East Hampton Town and establishing 0.5% to be tax paid by the purchaser of real property in the Town having been approved by the voters, the East Hampton Community Housing Fund was approved by Resolution 2022-943, effective April 1, 2023, as Chapter 162, Supplemental Real Estate Transfer Tax for Community Housing, as the East Hampton Community Housing Opportunity Fund. Such Fund is renamed herein as the "East Hampton Housing Fund" to avoid confusion with the Fund established under Chapter 160, Community Housing Opportunity Fund. The content of such Chapter 162 has been incorporated into and made a part of this Chapter 112, Community Preservation, as Article V hereof, as a more appropriate location for such legislation.
