Orangeburg, NY – Voters in the Town of Orangetown approved Proposition 2 in the November 3, 2026, general election, authorizing a new real estate transfer tax that will provide funding for land conservation, historic preservation and other designated community projects.
According to unofficial results published by the Rockland County Board of Elections and updated November 4, the proposal received 16,487 votes in favor and 4,520 votes against. The measure passed with approximately 78.5 percent support among voters who cast a vote on the proposition.
Proposition 2 authorizes Orangetown to establish a dedicated source of revenue for its Community Preservation Fund through a one-time tax of 0.3 percent on qualifying real estate transactions.
The tax will generally be paid by purchasers when they close on a property. Unlike an annual property tax, the charge applies to qualifying real estate transfers rather than being collected each year from existing property owners.
Under the town’s adopted Local Law 3-C of 2026, the first $100,000 of the purchase price of improved real estate is exempt from the tax. For unimproved property, the exemption is $50,000.
For example, a buyer purchasing an improved property for $700,000 would generally pay the 0.3 percent tax on $600,000, resulting in an additional charge of $1,800 at closing.
A buyer purchasing an improved property for $500,000 would generally pay $1,200. The law also includes exemptions for certain other transactions, including qualifying government transfers, gifts and specified conservation-related property transfers.
The revenue will be deposited into Orangetown’s Community Preservation Fund and restricted to purposes authorized under the town’s preservation laws.
Eligible uses include protecting undeveloped land, conserving forests and wetlands, preserving historic properties, maintaining wildlife habitats and acquiring property for parks and recreational areas.
The program also provides a mechanism for protecting drinking water resources, rivers, streams, working farms and other environmentally significant properties.
According to the town’s official explanation of Proposition 2, money generated by the tax may be combined with available state and federal funding to support qualifying preservation projects.
The measure requires public disclosure of fund expenditures. Decisions involving property acquisitions are also subject to applicable legal review requirements, including public hearings and the opportunity for a permissive referendum.
One property under consideration is the former Rockland Children’s Psychiatric Center site in Orangeburg.
Orangetown Supervisor Teresa Kenny has discussed the possibility of acquiring the state-owned property and using portions of the site for a community and recreation center.
In November 5 reporting, Kenny indicated that the state was conducting an appraisal of the property. She also explained that money from the preservation fund could potentially assist with acquiring the site or paying debt associated with a purchase.
However, the town has not announced a completed purchase agreement, and approval of Proposition 2 does not automatically authorize acquisition of the property.
The Community Preservation Fund legislation was adopted by the Orangetown Town Board on July 14, 2026, following state authorization allowing the town to establish the program.
Voter approval was required before the transfer tax could take effect.
The town’s law also provides that certain property transfers made under binding written contracts entered into before the law’s effective date may be exempt, provided the contract date can be independently established.
Kenny has indicated that the town expects to begin collecting the tax in February 2027. The exact implementation date remains subject to the required administrative and legal procedures.
The approval of Proposition 2 establishes a new funding mechanism for preservation projects throughout Orangetown, but it does not determine which individual properties will ultimately be purchased or protected.
Those decisions will require additional review and action by town officials.
Residents seeking further details about the program, applicable exemptions and future spending decisions can visit the Town of Orangetown’s official website at www.orangetown.com.