Extends the authority for the town of Brookhaven to impose a real estate transfer tax with revenues therefrom to be deposited into a community preservation fund

2025 Regular Session Introduced by Tony Palumbo

Extends Brookhaven's real estate transfer tax; all revenues go to a Community Preservation Fund to support open space, historic preservation, and parks.

REFERRED TO LOCAL GOVERNMENTS

Summary: Bill S 8555 – Extends Brookhaven’s Real Estate Transfer Tax Authority to Fund Community Preservation

Basic information

Bill number: S 8555

Title: Extends the authority for the town of Brookhaven to impose a real estate transfer tax with revenues therefrom to be deposited into a community preservation fund

Status: Referred to Rules

Introduced: October 29, 2025

Classification: Bill

Purpose and intent

The bill seeks to extend Brookhaven’s existing authority to impose a real estate transfer tax (RETT).

Revenues generated from the RETT would be deposited into a designated Community Preservation Fund (CPF). The underlying policy goal is to provide a dedicated funding stream to support community preservation initiatives within the town.

Key provisions (as stated)

Authority extension: The bill extends Brookhaven’s ability to impose a real estate transfer tax.

Dedicated funds: All revenues from the RETT would be deposited into the Community Preservation Fund.

Scope and governance (not specified in the provided summary): The text provided does not include detailed provisions on tax rate, duration, how the fund is governed, or how funds are allocated or disbursed. (Note: Full text would be needed for specifics.)

Who would be affected

Town of Brookhaven residents and property buyers/sellers: Any real estate transaction within Brookhaven subject to RETT could be impacted by the tax and its dedicated use.

Community Preservation Fund beneficiaries: Programs and projects eligible for CPF funding could include open space preservation, historic preservation, park development, and related initiatives, depending on the fund’s formal purposes (not detailed in the provided summary).

Procedural and timeline aspects

Current stage: Referred to Rules, indicating the bill has been introduced and placed with the Rules Committee for consideration, scheduling, and potential amendments.

Next steps: If advanced, the bill would typically move to additional committees and eventually a floor vote. Specific timelines depend on Rules Committee action and subsequent committee schedules.

Potential impacts and considerations

Fiscal impact: Revenue depends on the RETT rate and transaction volume in Brookhaven; could provide a stable funding source for preservation projects but may affect transaction costs in the short term.

Policy impact: Establishes a dedicated funding mechanism for community preservation, potentially shaping how local preservation projects are funded and prioritized.

Transparency and governance: Absent from the provided summary are details on fund administration, eligible uses, sunset provisions, or oversight mechanisms.

Notes

The summary reflects information provided here. The full text of S 8555 would clarify exact tax parameters, fund administration, eligible uses, duration, exemptions, and any sunset or renewal provisions.