Warwick voters approve transfer tax by 237 votes

Warwick voters approve transfer tax by 237 votes
Tax will take effect April 1, 2007, By Linda Smith Hancharick
Warwick — Nearly 7,000 voters came out to vote Tuesday in what is called an “off-year election.”
But it wasn’t “off year” here in Warwick. No, the campaign to approve or deny a Community Preservation program was the number one topic on many people’s minds for the last few months.
Voters approved the Community Preservation Fund by a vote of 3,574 - 3,337. The 237-vote margin shows just how divided the community is on what amounts to a transfer tax on real property. About 35 percent of the town’s 19,544 registered voters went to the polls.
Supervisor Michael Sweeton, one of the original writers of this proposal, was happy with the result.
“I knew it would be close,” Sweeton said. “The issue of taxes are on everyone’s minds. We deal with taxes every day and understand the concerns. Ultimately, the test of time will show this will be good for Warwick.”
Sweeton said he was also happy with the turnout for an off-year election. Other places had average turnouts but Warwick’s turnout was pretty high.
The supervisor, along with others who devised the plan, went to Albany in 2003 requesting that home rule be granted to allow Warwick to decide its own fate. That would allow local voters to decide whether to impose a tax on real estate and use the money to preserve open space by buying the development rights to farms. It wasn’t until two years later that Albany came through, thanks to a bill by state Sen. Thomas Morahan, R-New City, and Assemblywoman Annie Rabbitt, R-Greenwood Lake.
Opponents say tax
will hurt middle class
The proposition had its detractors. James Marsden, owner of James Marsden Real Estate on Main Street, was one resident against the transfer tax, not because he is against preserving open space, he said, but because he felt the issues and effects of this law weren’t really addressed.
“They based their numbers on the market two years ago,” Marsden said. “You’ll see them raising the percentage. They’ll say this isn’t raising enough money and they’ll be back for more next year.”
That’s not going to happen, according to Sweeton.
“This is a New York State legislative act. It is a law that amends the finance law,” Sweeton said. “Going back four years we said ¾ of one percent is a reasonable number. Every member of the town board still feels that way. We can’t just change that. We would have to go through the whole process again. No one has that intent.”
Marsden said this is already a slumping market. Adding a sales tax to buying houses is going to hurt the working guy.
“It is just another obstacle to sale,” Marsden said. “This is going to hurt the working guy who wants to sell his house and the middle class guy trying to buy one.”
‘When fear gets out’
Warwick Mayor Michael Newhard said he understands people’s concerns but is “very pleased” with the result.
“I think the opposition to this had more to do with people’s concern with the cost of living here, not preserving open space,” said Newhard. “What I sense is it was fear based. When fear gets out there, it infiltrates quickly and it is tough to undo it. We have such a diverse community with diverse politics and vantage points. I thought it would be close.”
The money raised through the fund, just like the $9.5 million raised through the Purchase of Development Rights referendum in 2000, will go toward preserving open space throughout the town. The new law will allow the town to impose a .75 percent tax on all real estate transactions within the town of Warwick. The first $100,000 of the selling price of a home would not be subject to the tax. The first $50,000 of the price of land would be exempt as well. Warwick has preserved more than 1,200 acres of land so far with commitments from landowners for 1,100 more.
The tax will not take effect until April 1, 2007, according to Sweeton, after a mandatory 60-day waiting period. It must be implemented at the beginning of a quarter.
In August, the town created a plan which includes properties that are eligible for preservation. None of the properties are mandated to participate. A copy of the plan is in the town clerk’s office for review and can be found on the town’s Web site at www.townofwarwick.org. Properties listed include open space, trails, aquifer recharge areas, recreation areas, historic sites, and agricultural sites.
Time will tell
Both Newhard and Sweeton foresee a better Warwick thanks to this new law. Marsden thinks it will have a negative effect on the middle class here in Warwick.
“What effect will this have on the Warwick market?” Marsden asked. “Only time will tell.”