East Hampton Has Biggest Preservation Fund Decrease

Real estate transactions in the first quarter of 2017 raised less money for the Peconic Bay Community Preservation Fund than they did in the first months of 2016, although the number of sales was virtually the same.

The preservation fund receives the proceeds of a 2-percent transfer tax imposed by the five East End towns, which provides money for land preservation and, starting this year after a successful referendum, for water quality improvement.

The fund, which has generated $1.2 billion since its inception in 1999, including $89.9 million last year, will continue until 2050. First-quarter revenues over all were $22.1 million this year, as opposed to $25.9 million last year, a 14-percent drop.

The decline was most pronounced in East Hampton Town, New York State Assemblyman Fred W. Thiele Jr., who sponsored the C.P.F. legislation, announced this week in a press release.

East Hampton’s revenue for the first three months of the year decreased by just over 37 percent compared to the first quarter of 2016, coming in at $6.3 million this year while the revenue was $10.1 million last year. Transfer tax income for Southampton Town also declined, but by only 2.7 percent.

Scott Wilson, East Hampton Town’s director of land acquisition, said this week that the first-quarter revenue decrease is not unusual or of concern; the real estate market generally slows in winter months, he said, and preservation fund receipts in the ensuing months reflect that. He said he expects a “significant uptick” in proceeds during the year’s second quarter.

In the other three East End towns, Shelter Island saw a 30-percent drop in preservation fund revenue for the first quarter of this year, compared to the same period in 2016. In Southold there was a 20-percent decrease, and Riverhead’s revenue decreased by 7.6 percent.

“Real estate sales on the East End have plateaued since reaching a record high in 2014,” Mr. Thiele said in the press release. “C.P.F. revenues in 2016 were 13 percent lower than the program’s highest year in 2014, declining by about 7 percent a year over the last two years. The first three months of 2017 has continued that trend.”