Town Board approves tax plan for referendum

Town Board took the next step in preparing for a referendum in November on a new tax to underwrite a new land-preservation project.

The board voted to submit a proposed law to voters that creates a new real estate transfer tax, whose revenues will be used mainly to preserve farm properties.

The board had already approved two new town laws creating a preservation fund and a preservation board to manage that fund. Final step is a tax to provide funds for the board to use in implementing the preservation program.

Following state laws governing such plans and the example of other communities like Red Hook that have begun implementation, the Chatham board’s law, if approved by voters, would create a tax of 1.5% on property sales above a threshold defined as median property value in Columbia County. That median price for residential properties is currently $370,000. If a house sold for, say, $670,000, the 1.5% tax would apply to the $300,000 difference between sale price and median value.

The fund is termed a “willing seller” plan. That is, the town would look to purchase from property owners who are interested in the benefits of participating in the plan; no property owner would be coerced into participating.

There are options for how the town would be involved, as well. If owners of a working farm wanted to continue working their farm, the town’s fund would purchase “development rights” giving it control of future development. Or it could buy the property outright.

Board members acknowledged that the formulas and details of the plan will require careful explaining so that voters are fully informed.

Board member Vance Pitman said he opposes a new tax and isn’t keen on having the town take ownership of farm properties and thereby having to maintain them. But he said he would vote for Thursday’s motion in order to get the plan before the voters in November.

Other board members voiced concern, but said the plan has been successful in other communities and that its goal of protecting working farms and agricultural values is a worthy goal.