Extends the effectiveness of the authority of the town of Red Hook to impose real estate transfer taxes and to deposit revenue from such taxes into a community preservation fund

2025 Regular Session Introduced by Michelle Hinchey

Extends Red Hook’s real estate transfer tax authorization and its community preservation fund deadline to December 31, 2051, ensuring continued revenue for preservation.

ORDERED TO THIRD READING CAL.1392

Summary of Bill S.9041 (2025-2026) – New York

Purpose and intent

Extends the effectiveness of the authorization for the Town of Red Hook to impose a real estate transfer tax with revenues deposited into a community preservation fund.

The bill revises the sunset timing for the relevant provisions to allow a longer period of operation.

Key provisions and changes

Amends Chapter 443 of the Laws of 2006, which previously authorized Red Hook to impose a real estate transfer tax and dedicate the revenues to a community preservation fund.

Section 4 of the amended act:

States that the act takes effect immediately.
Establishes that Section two of the act shall take effect on the 90th day after the law becomes effective.
Extends the expiration (sunset) of the provisions in Section two to December 31, 2051, replacing the prior expiration date of 2026.
As a result, the town’s authority to impose the real estate transfer tax and to deposit revenues into the community preservation fund would continue through 2051, assuming no further legislative action.

Affected entities and impacts

Primary beneficiary: Town of Red Hook.

Effects on the town:

Maintains the option to impose a real estate transfer tax within its jurisdiction.
Requires that revenues from the transfer tax be deposited into a designated community preservation fund.

Fiscal/land-use implications:

Provides a stable funding mechanism for community preservation initiatives (as defined by the town’s program and related fund).
Creates a longer, predictable horizon for planning and investing in preservation-related projects funded by transfer tax revenues.

Procedural and timeline aspects

Status: Introduced January 27, 2026; referred to the Senate Committee on Local Government; later actions show committee discharge and movement toward Rules and third reading as of May 2026.

Effective dates:

Immediate effectiveness for the act overall.
Section two (the extended sunset) becomes effective 90 days after enactment.
Long-term sunset extended to December 31, 2051 for the operative provisions.

Notes

The bill preserves the framework established in 2006 for Red Hook’s real estate transfer tax and the associated community preservation fund, but with a significantly extended expiration date to 2051.

No changes are indicated to the tax rate, assessment base, or fund usage beyond extending the authorization period.