Pataki: Add tax to save open space
Charge would affect buyers of real estate


By Anthony Farmer Poughkeepsie Journal May 21, 2005

Spending taxpayer dollars to preserve the dwindling number of farms and open spaces in the mid-Hudson Valley has become an accepted way of maintaining the area's historical character over the past decade.
But the limited number of local dollars available to do so has been a major obstacle.
Legislation proposed by Gov. George Pataki Friday would allow cities, towns and villages to impose a real estate transfer tax of up to 2 percent of the sale price of property to help fund open-space preservation. It is similar to a bill with majority-party support in both houses of the state Legislature, a sign the plan could be headed toward approval.
While some local communities have borrowed money to help attract state and private money for protecting open space, there is rarely enough to go around. In 2003, the state's farmland protection program received nearly $70 million worth of requests for land preservation projects — but only awarded $12 million.
Creating a dedicated, local stream of revenue for open-space projects could help attract more state money, said Assemblyman Pat Manning, R-East Fishkill.
"If you show you're interested in saving land, the state will partner with you," said Manning, a co-sponsor of the similar bill in the Assembly. "This will be an avenue to give those communities the ability to do so."
If the legislation is approved, a local referendum would need to be held so voters could approve the transfer tax in their community.
Minor differences
A Pataki spokeswoman said the differences between the governor's and Legislature's bills are relatively minor and should be able to be ironed out. The governor is hopeful legislation will be approved this year, she said.
"Over the last 10 years, the state has protected more than 910,000 acres of open space and created new parks and recreational facilities for the benefit of our children and future generations," Pataki said in a written statement. "This legislation will provide all communities with the means to build on and continue this important work on the local level."
But the same goal can be accomplished by clustering residential development, instead of imposing another tax, said Mario Johnson, governmental affairs director for the Builders Association of the Hudson Valley, which opposes the plan. A 2 percent transfer tax on a home sold for $300,000 would cost the buyer an additional $6,000.
"Two percent would just push a certain number of families out of the affordable housing range," Johnson said. "We're pricing everybody out."

Anthony Farmer can be reached at apfarmer@poughkeepsiejournal.com

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